In property, we often think bigger is better. Have you ever thought smaller might have its advantages? Welcome downsizing - this is the process of moving to a smaller property from your larger one. This is a decision made by those eager for a change, are struggling financially with related property costs, struggling with the upkeep, or empty nesters. It may even be time to move closer to friends and relatives and downsizing might be the only option. Let’s look into the pros and cons.
Pros
Depending on how long you've been in your current home, you may be paying increased rent or be in a position to pay off your mortgage soon if you haven’t already. Downsizing will mean less rental cost for a smaller place or will release a lot of equity for you to use for whatever you wish, including being a cash buyer for your new home.
Sticking to the financial side of things, downsizing is cheaper to run because there’s less upkeep, lower bills, and fewer costs. If you’re downsizing from a rental property then guarantor services, like RentGuarantor, become cheaper too because the service fee is relative to the rental amount. Downsizing can bring better opportunities that are more suited to your lifestyle. Whether you’re looking for a one floor apartment because stairs may be an issue or a quieter neighbourhood to live and unwind in.
Cons
The biggest con of downsizing is coming to terms with less space. For much of our lives we’re taught to have ambition and strive for bigger houses and more space. It’s natural to resist this but once you can come to accept it it can bring you a better quality of life with all the extra money made on a sale. Moving can be an exhausting task and the costs of hiring movers can be enough to put anyone off the idea. Moving to the right area might not always be as easy and there may not be any properties on the market close to family and friends.
It’s important to evaluate all aspects before committing to downsizing. There are many positives to take from downsizing if you’re prepared to sacrifice the space you have now. When you are ready you will know when the time's right to downsize. The thought doesn’t enter most people's minds until the time is right. If you’re ready for the more minimalist lifestyle, you’ll know.
