What Should I Consider When Downsizing?
What to consider when downsizing
What should I consider when downsizing? It’s a great question: does downsizing make sense financially?
The financial benefits of downsizing should be obvious – you are spending less on heating, running and maintaining a smaller home; and you will be able to enjoy a small nest egg in whatever way you choose.
If your financial position is more complex you should seek specialist and independent financial advice before you sell and move on. In some cases, it may be better to rent than buy, and vice versa.
What should I think about when downsizing?
If you’re planning to downsize, there are certain things that you have to take into consideration if your move is to be successful. Read about the most important factors before you take the plunge.
Downsizing is something that many people do at a certain time in their lives usually to take the opportunity to release equity in their property. However, knowing when the time is right to do so is crucial for a major decision like this.
Most people like to move every couple of years (whether that be itchy feet or a love for decorating and designing new interiors). If you’re in this boat and you are thinking about new build vs old, we’ve covered everything you need to. We’ve got five tips for people who are downsizing from relocation, removals and self-storage experts to help you get it right first time.
When should I downsize?
A lot of people ask themselves ‘when should I downsize?’. Downsizing your home is a very personal decision and one that only you can take at a time that suits you. Some people choose to do it before they retire so that they can achieve the financial savings from doing so whilst they are still economically active.
Other people prefer to leave it to a later time in life and will often make the decision in a way that advantages their children so they can help them either get on the property ladder or move up the property ladder.
Is downsizing difficult?
There is no way that you can squeeze everything from a 4-bedroomed family home into a 2-bedroom bungalow and this means making tough choices about what stays and what goes.
Beyond asking ‘when should I downsize’, we should consider ‘Is downsizing difficult’? Many people find that placing their items in storage ensures they have longer to decide what works in their new downsized pad, and what doesn’t.
Decluttering experts suggest thinning out your possessions about three months before you move, if not earlier. And if you really can’t decide on whether to keep something or not, as already mentioned, defer the decision by placing it in self-storage. So, is downsizing difficult? If you’re prepared, you should be more than OK.
Once you have lived without something for a while it becomes much easier to decide if you need it or not.
Do I need to downsize?
You may have decided that keeping on a large house is not financially viable or even practical as you get older; but what is it that you really need from your new, smaller property? And, do I need to downsize?
Bungalows with no changes in level and small, manageable gardens are an option, but they are not the only option by far. There are other sorts of properties that form part of a community, on which there are also communal spaces so you can easily get to know your neighbours.
Just be aware of the issues of some retirement properties who’s value can fall dramatically when re-selling, as reported in The Guardian.
On the other hand when considering if you should downsize, you may prefer a property in the heart of town so when you are no longer driving, you are on a bus route or a short walk to local amenities.
In other words, the property you are looking for is also a personal choice and what suits you, will not suit another downsizer. Neither is the move just about finding the right property but about finding the right location, community and facilities.
Does downsizing make sense financially?
It’s a great question: does downsizing make sense financially?
The financial benefits of downsizing should be obvious – you are spending less on heating, running and maintaining a smaller home; and you will be able to enjoy a small nest egg in whatever way you choose.
If your financial position is more complex you should seek specialist and independent financial advice before you sell and move on. In some cases, it may be better to rent than buy, and vice versa.
Make lists
Staying organised is crucial to any successful move but when it comes to downsizing it is even more essential. With this in mind, plan your move with lists of what is to go where, what is going to the new home and into storage, what is being donated to charity or disposed of.
Also pack everything systematically and label clearly (or even colour code) all boxes so movers are absolutely clear about the destination of each item or box.
When downsizing, it’s important to remember to update your address with every company.
At SlothMove we’ve created an online change of address portal to help save you 19 phone calls & hours of your time.
Final Thoughts
Hopefully you now fully understand what to consider when downsizing. There are a lot of things to consider, but now you’re aware of the 5 key things to consider when approaching the topic. If you’re looking to save money alongside your move, head over to how to save money when moving home.