When talking about moving house we often think of buying a larger property, but there are also plenty of people who are looking to downsize and for many reasons,
maybe their children have left home and they are left with a large house which is now surplus to requirements, maybe they are looking to release some equity from their home to enjoy life a little more or maybe they want to buy a smaller home and therefore not need a mortgage.
Whatever the reason homeowners of all ages can downsize and make the best use of their assets. The first and biggest thing to remember is that each individual case is unique, there are so many factors which can influence whether or not this is the right decision for you, so make sure you do your homework. Here are some solutions to some common problems people face and/or worry about when it comes to downsizing.
“Will it end up being a costly exercise once I factor in moving expenses?”
Moving is always expensive and if you are considering downsizing to release some equity you have in your home you might want to weigh up the actual costs of moving so you are more aware of the total amount you will receive. With more people looking to downsize and not enough people getting on the property ladder sometimes this means having to accept less money in the bid to downsize. Ongoing moving costs to factor in such as legal fees, solicitors cost, surveys and maybe even stamp duty you will want to ensure you have done your sums. If you can work out a rough estimate of your costs you should be able to see how much money you should walk away with, this will then guide you into to looking at the right price range of properties which are suitable for you. Make sure you do your research, calculate your costs the best you can and you should not find yourself out of pocket.
“Will it save me money overall?”
This is a tough question to answer as it really does depend on so many factors, such as how much equity you have in your current home, the area in which you will be moving to and a whole host of other variables. However, generally speaking downsizing to a smaller property should find you reducing your mortgage if you need one at all. Your utilities might decrease as, for example, you might find heating a smaller home means more savings in your pocket. You will also benefit from a smaller home to keep which could mean less chores and less garden upkeep.
“How will I cope with my belongings in a smaller space?”
Did you know this is the most common worry for people who are considering downsizing? Over the years we accumulate furniture and belongings which are not just important to us but that we equally do not want to part with. Nowadays there are so many great storage solutions for homes that you can be smart with how you store your belongings. These are worth investing in if you want to try and keep as much as possible.
Downsizing is a tricky subject and one which requires much research and thought as it really does depend on many variables as to whether you will find yourself better off in the long run.