The ups and downs of downsizing: 4 things to think about
Add a Comment 6th December 2019 Real Estate
The ups and downs of downsizing: 4 things to think about
Are you thinking about downsizing? Maybe the kids have finally left the nest, or maybe you want to live somewhere that doesn’t need so much maintenance. Whatever the reason, you want to make sure you make the right decision – the one that helps you build the most secure, sustainable future you can in a home you love. Here are 4 questions to ask yourself when you're making the decision.
1. What are your priorities?
Getting clarity on why you are downsizing life will help you make the right choice. Try writing down a list of what you value most about downsizing. Is it reduced maintenance? Reduced cost of living? Living somewhere cosy without so much spare space? Is it making money from the difference between your current and future homes? It might be any of these reasons, or plenty of others. The important thing is that you are clear on what you want to achieve by downsizing so that you can make the best decision for your unique circumstances.
2. What’s the best investment decision?
To make the best investment decision, you’ll need to weigh up how much you can sell your current home for, and how much the smaller homes you’re interested in are selling for in the current market. You’ll also need to make sure you compare both of these prices in the current market with past sale prices, and the sale prices projected for the future. Look through property listings online and in newspapers to see how much different types of properties are selling for now and in the past. If you have the time, you’ll want to wait until the market conditions are right before making any moves so that you can get the best return on your investments.
3. What lifestyle do you want to live?
When you think about downsizing, are you thinking about changing your lifestyle too, or are you satisfied to continue your current lifestyle, just in a smaller home? Your answer to this question will affect all sorts of decisions, from the locations where you’ll look for a new home, to the type of property you’ll buy, to what possessions you’ll shed and what you’ll keep when you’re trying to fit everything into somewhere smaller. Try walking through your day-to-day life in your mind in your ideal new downsized life.
4. What does the future look like for you?
The next home you buy might be the one for the rest of your life. Downsizing can be a great opportunity to move from a big house that would be hard to navigate for someone who’s elderly, into one that’s more friendly to people with different capacities. It’s therefore worth putting some thought into the current accessibility of where you might live, and how it can be altered to make it more liveable as you get older.
Ask yourself these 4 questions and you’ll be on your way to making the best decision about downsizing to suit your unique circumstances and build a great future in a place you love!