How to decide if you’re ready to downsize your home
The pros and cons when you downsize your home
When you’re considering the move to a smaller property it can be daunting trying to imagine fitting everything you own into a smaller space. But there are definite upsides to downsizing too. Let’s go through some of the different considerations that you may like to add to your pros and cons list to decide if you’re ready for the move.
The strength or weakness of the property market
When the market is doing well the thought of selling your large home may be an appealing thought, particularly if all the kids have left! More money and no space for them to move home… Tempting thought I hear you say! But it’s wise to consider that the purchase cost of a downsized property may also have a higher price than what you would pay in a more stable property market. At other times it can be a win-win. For example, in 2017 the median house price in Brisbane increased while the median apartment price decreased. This meant a buyer could potentially have sold their house in a strong market for a high price and then bought an apartment for a lower price in a distressed market. Having some insights into the property market can definitely help with your decision. If you’d like to get an appraisal of your property you can contact one of our sales agents. They can also answer any questions you have around the market and provide insights on any specific suburbs you’re considering.
Lifestyle
It’s also important to consider your lifestyle preferences. For example, if you sold your large house on an acre of land in the outskirts of Brisbane, would you really be happy living in the inner city suburbs in an apartment? Developers are offering more and more variety in terms of what different properties can offer. Weighing up what’s important to your lifestyle can determine if downsizing is actually the right decision for you right now. For example lifestyle preferences such as peace & quiet, access to good restaurants, close to family, easy access to freeways/motorways, lots of storage, having a garden etc. are going to make it pretty clear what sort of property is going to suit you now and in the future.
Health
As we get older it’s a fact of life that what we once loved may now be a nuisance. Many people start to dislike stairs and bathtubs as they age as they become cumbersome. This sort of consideration can be a major influence when considering whether to downsize your home. If your current home has features that you now find bothersome it may be a good time to downsize.
Time
What do you want to spend time on in the future? If it’s not house or garden work then you may be more tempted to downsize your home. According to a 2011-2012 ABS Survey of Income and Housing, home owners aged 55 years and over were more than twice as likely than under 55 year olds to have three or more spare bedrooms in their home! That’s a lot of extra beds to make and sheets to wash!
Your financial future
Is your bank balance a little light? Or do you have a bank balance that would make Donald Trump jealous? Depending on your finances, choosing to downsize your home may free up some cash to help you better enjoy your future. However, if you’re receiving or planning to receive an aged pension it’s important to seek advice to see if this plan may impact your pension entitlement.
In addition, there are the costs of selling and buying property that must be factored in. These will include tax, legal fees, agent commissions, advertising costs, moving costs, cleaning costs, bank fees, and any general maintenance that needs to be done before selling/buying.
Sum up
So what are your thoughts? Are you feeling positive about the potential to downsize your home? Or does the thought of leaving your current home scare you? Only you will know when you’re ready but hopefully you’ve now got some things to consider and to help you ultimately decide when the time may be right.
If you’re ready to find a new home you can view our current properties for sale here and properties for rent here.
