Downsizing guide
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What is downsizing?
Downsizing is the term used when property owners decide to trade in their current home for a smaller one. Traditionally the choice for older generations looking to release money from their properties, we now see younger homeowners making this choice as they face challenging financial times during the cost-of-living crisis.What are the potential benefits of downsizing?
Easy management A smaller property will be easier to look after with fewer rooms to clean and less building overall to maintain. Often, you’ll find downsizing your house will also mean downsizing the garden so you’ll have to spend less time mowing the lawn, pruning and weeding. You might take the opportunity to move to a newer property when you downsize making your home easier to look after with less general wear and tear overall. Cheaper to run Providing you’re buying a property of a similar age and EPC (energy rating), the chances are a smaller home will be cheaper to run as there will be less space to heat, fewer windows to allow heat to escape and less insulation required to keep the house warm. Smaller homes in the same council area will usually fall into a lower council tax band so your bills from the local authority should be less. Live in a better location Our needs and wants for the places we live change as we age. It might have been important to be close to good road and rail access when beginning a career but when ‘winding down’ or in retirement, perhaps finding more ‘peace and quiet’ comes higher up the agenda. Equally, getting older might bring mobility issues and being closer to local amenities might be preferable. Chance to be nearer to friends and family Downsizing could give you the opportunity to move closer to your adult children if they moved away giving you more time to spend with grandchildren.What should I consider before downsizing?
Moving costs If you’re downsizing to release money from your current home, you need to be aware of the costs of selling and buying a new property as they will eat into the pot you’re left with. Estate agent fees, Stamp Duty, solicitor’s bill and removals are the big ones but you should think about any other costs you could incur like buying new furniture if yours is too big for the new house. Lifestyle changes Whilst downsizing brings opportunities to improve the way you live, it may still be a wrench to leave the community and area you’re settled in. You should think about the benefits and what you’ll miss to make sure the final result is worth it. De-cluttering and saying goodbye You’re likely to have less space for your things when you downsize so consider which big items of furniture you’ll take with you and what other clothes and personal effects you can fit in the new property. You have the chance to list certain items for sale to your buyer when you complete the paperwork from your solicitor which could be a simple and budget friendly way to de-clutter. Do your homework If you’re heading to a new area to be closer to people you care about or services and facilities you need, make sure you know what it will be like to live there.- What are the neighbourhoods like?
- Are there particular streets people tend to avoid?
- How busy is the road network?
What’s the best way to go about downsizing?
There are two main routes you could take to establish yourself in a new, smaller and more manageable property:- Sell your home first then start your property search or
- Buy a new dream home then deal with the sale of your current place