Downsizing to a smaller home can bring a lot of benefits depending on the stage of your life you’re in, but it can be a hard thing to adjust to when we’re constantly told that bigger is better. If you’re starting to consider whether this move would be the right one for you to make, then we’ve got some important things for you to bear in mind when making your decision.
What is downsizing to a smaller home exactly?
Downsizing to a smaller home means essentially what it says on the tin. Though you may have spent most of your life up until this point moving from one property to the next, slightly larger, one, downsizing is exactly the opposite. Usually downsizing comes later in life, but that doesn’t mean it can’t be done at any stage, especially if you’ve found a larger home to be more of a burden than a benefit. There are plenty of reasons you may settle on downsizing to a smaller home but the decision is often not an easy one to make.
After striving to afford a larger home it can feel like a step in the wrong direction to move to something a little more modest. Moving home is also an emotional process and involves departing from what we find familiar and safe. For that reason the decision to go ahead with downsizing to a smaller home can be one that you take a while to settle on. Because of this we’ve looked into what the advantages and disadvantages are to help you decide what’s best for you.
What are the advantages of downsizing to a smaller home?
Depending on the stage of life you’re in there are plenty of benefits to downsizing to a smaller home. These could be financial or they could be things that simply make your life easier on a day to day basis. We’ve considered every aspect of what these benefits could be so that you can make a well-informed decision on your prospective house move.
Releasing equity or a smaller mortgage
Depending on the stage you are in in life downsizing to a smaller home can mean one of two things financially; either you could do away with a mortgage entirely or have one that is much smaller. The only time this would not be the case is if you are hoping to move to a more expensive area than the one you currently live in. For example, selling a detached house in North Wales would not necessarily mean you would have money to spare if you then moved to a 2 bed flat in London. . . However, in the majority of cases downsizing to a smaller home will leave you with money to spare, whether that’s liquid cash in your bank account or smaller monthly outgoings.
Smaller utilities costs
Unless you’re planning on moving to a property that has holes for windows then it’s more than likely that your utilties bills – including water, electriticity and gas – will be much smaller, freeing up your finances in that way.
Helping the younger generation
If you’re downsizing to a smaller home because your children have flown the nest then this move may mean that you’re in a position to aid them – or any grandchildren – financially in getting on to the property ladder themselves.
Financial security
If downsizing to a smaller home means you are able to free up a lot of income then you will be in the enviable position of being able to supplement your existing pension, whether that’s a consideration for now or for much further in the future. And this in turn gives you the ability to either supplement your income or to invest more in hobbies or travel or anything else you enjoy.
Other advantages of downsizing to a smaller home include . . .
Of course, your reasoning may not solely be financial, in which case you may have already considered the following advantages of downsizing;
Less to clean and maintain!
A smaller property means less floors to hoover and mop, less surfaces to dust, less windows to wipe and it could also mean less outdoor space to care for. As all these tasks take up more than their fair share of time you’ll certainly be saving a lot of time and effort if you move to a smaller property.
Cut down on clutter
A to a smaller home will necessitate a lot of culling of your personal items. But this isn’t always a bad thing! Getting rid of excess personal belongings can provide an opportunity for keeping only the things that truly bring you joy, rather than clutter and unloved items that have grown in number over the years. You could gift or sell these unwanted items, ensuring your new home is a space full of only the things you love best.
Lessen injury risks
One of the most common moves when it comes to downsizing is elderly homeowners moving from a larger property to a single floor home, which massively mitigates the risk of falls from moving up and down stairs. Even the most physically able people on the planet slow down as they age and there’s no escaping the fact that stairs are rather taxing – there’s a reason there’s a stair machine in the gym after all! A bungalow or apartment can make life easier, even when you consider such a simple task as making your way from your living room to your bedroom at night.
Environmentally beneficial
Smaller homes need less energy to run and they also need less things to maintain them. You could even use this as an opportunity to introduce environmentally-conscious appliances to your new home which make your life easier and make the property a greener place overall.
An opportunity to shake things up
Whether you’re in need of a change in your routine or whether you really like to decorate there’s no getting away from the fact that a new home allows you to mix things up a little and it certainly makes things exciting. Your new home could be the opportunity you’ve been looking for to treat yourself to new appliances or it could introduce a new walking route or local businesses into your life.
What are the disadvantages of downsizing to a smaller home?
Not every decision is right for everybody so in the interest of being decidedly non-partisan we want to highlight the ways that downsizing to a smaller home could actually be a negative move for you.
The financial drawbacks of downsizing to a smaller home
As previously mentioned downsizing to a smaller home isn’t all sunshine and rainbows. If you decide to move to a more expensive area then all your years of mortgage payments may not stand you in as good a stead as you would like to think. And the Sold price of the property isn’t the only you need to consider. In a more affluent area the Council Tax you pay will also be more expensive, too.
Fees associated with selling your property
There are always costs when it comes to moving home and you will have to make sure you factor these into your calculations when you think about moving home. Estate agents fees, Solicitors fees, Stamp duty and movers costs will all need to be budgeted for. You may also need to think about the costs of furnishing your new home if your existing furnishings will not be suitable and you will almost certainly need to consider the cost of decorating.
The financial cost of preparing your home for sale
This is another sunken cost you will need to at least consider, though it may not be particularly applicable in your scenario. Preparing your home for sale usually means giving everything a fresh coat of paint, carrying our long overdue DIY tasks and ensuring everything is spick and span. If your property does need all this then you will at least need to factor in the expense of DIY materials. If you aren’t physically able to carry out these tasks yourself you will also need to budget for the services of tradespeople.
Other disadvantages of downsizing to a smaller home include . . .
Not all reasons are motivated by financial gain or loss and the following drawbacks may help you to make a more informed decision;
Saying goodbye to belongings
A smaller home means less space and means you won’t be able to take everything from your old home with you. Getting rid of items you own – even if they don’t hold any sentimental value – isn’t easy for everyone. In fact, for some people it can be a particularly difficult process and could make the move something you dread rather than look forward to.
Less space, less space
If you move to a smaller home it may take some getting used to and it could even feel like a step backwards. It’s not always the case, but you could lose out on exterior space too, whether this is available parking space or gardens and patios.
Age-related changes
Aging is inevitable but it doesn’t mean it’s a welcome thing. In fact, it can be a time of great change and many people can feel like their body is a traitor, not allowing them to do simple tasks they managed with ease previously. Because of this the thought of more change in the form of moving to a new home altogether may be something that inspires anxiety.
If this is the case then you shouldn’t feel backed into a corner; there are plenty of aids that can help to make your current home workable for you. Age UK have more than a few handy articles on how to go about this, from what changes to make to getting help with paying for them.
A change is as good as a rest, until it isn’t
Change can be a good thing but sometimes it’s better the devil you know. A new home will have its own quirks that you will need to learn, there may be certain things about a smaller property that are just not right for you, or it may just be that moving to a different area or having new neighbours is something that fills you with dread. It’s important to remember that if you do commit to downsizing to a smaller home it’s a move that needs to work for you and for the others you share a home with.
We hope this breakdown has helped you to make a more informed decision about whether or not downsizing is the right move for you to make. If you’re in the North Wales area and would like to look for a more modest home today, or have a property in the North Wales area that you would like to list for sale, then our team can certainly help. You can get in touch with us either by filling out our contact form, by emailing us at lettings@varcityltd.com or by giving us a ring on 01248 719254.
