Downsizing can be a great way to make a profit on your home and save on some monthly expenses, but unfortunately, it’s not as straightforward as it sounds and there are a number of things you’ll need to consider before moving to a smaller home…
Competition could hit your profits
If you downsize too much, you could find yourself in direct competition with first-time buyers who are more attractive to sellers due to having no chain attached. To secure the property, you may find yourself paying above the asking price which could in turn take a sizeable chunk out of any profits made from selling your property.
Finding the right home
If you’re downsizing to cut down on your monthly costs, it’s important to bear in mind that with certain locations you could be spending just as much if not more on a smaller home. Properties with access to transport links and proximity to tourist attractions and local amenities often command premium prices to keep up with demand. Retirement hotspots in the UK such as Dorset, Devon and Norfolk are also known for steeper prices, so it’s important to take time to consider the location of your move and weigh up whether you value surroundings over indoor space.
Get expert advice
Selling and buying a home is never easy, and downsizing comes with its own list of extra complications and difficult decisions. You will need expert advice from an agent who knows the market well and can help you protect your profit, advise you on how to manage your monthly savings and find you the perfect home.
Do you need the extra space?
Downsizing can be tempting if you find that too many spaces in your home are going unused but if your concern is that your home has too many rooms, consider their function and if you can live comfortably without them. Repurposing rooms is much easier than moving house due to lack of use. For example, switching a spare bedroom into an office or a gym is a great way to get more use out of extra space instead of letting it collect dust.
The number of people in your household
If you’re moving your family into a smaller home, you will need to consider how many bedrooms are needed and how your family will function with less space. Will any rooms need sharing? Is there enough space for everyone to relax and have fun? Would your family benefit from more than one bathroom? Make sure you carefully plan out how you will be using your space and take into account every family member’s needs.
Your storage needs
When moving from a large house to a smaller house, it’s inevitable that you’ll have an excess of furniture items and family keepsakes that may need storing away. If you’re unwilling to part with certain items but there’s no space for them in your new home, you’ll need to consider all your storage options and any possible costs that come with them.
Your plans for the future
With any move, it’s important to factor in your future plans and whether the new home will be suited for them. For example, if you’re planning on retiring in a smaller home, make sure it can accommodate the needs of someone who is older or spends more time at home.