Thinking of downsizing? What you need to know

By Julie Ryburn
In Home Loans

Downsizing your home can be a daunting prospect. But whether you’re an empty nester, trying to save money or simply making a lifestyle choice, there are many benefits to the ‘less is more’ approach. Here’s why.

More cash in your pocket

It stands to reason that selling a bigger property and buying something smaller will leave you with lighter mortgage repayments – or better still, mortgage-free living. You can divert this new cash injection into things you enjoy doing such as travel or new hobbies. Try to plan your move so that you make money on your sale, and buy your new property in favourable market conditions.

Less maintenance – and smaller bills

One of the greatest benefits of downsizing is the reduction in household workload. Smaller – and often more modern – properties simply have fewer jobs attached to them. Your free time can actually be spent doing the things you enjoy – rather than up a ladder clearing gutters or patching up paintwork. The utility bills will also be considerably more palatable with a smaller space to service.

Ring in the changes

Downsizing is a great opportunity to switch things up in terms of lifestyle or location. You might choose to move closer to family and friends, place yourself more centrally in a city – or remove yourself altogether. Think about the sorts of amenities you want close by, such as shopping or parks. The added benefit of a smaller property is that you avoid the pressure of hosting guests overnight. But the flipside of that is you have less private space for yourself and your own needs.

Still unsure?

Ask yourself the hard questions. Do you use every room? Are you well connected to family and friends? Would downsizing improve your financial circumstances? If the answer is yes, there is a whole new adventure just ahead.

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