Downsizing your home isn’t always a bad thing to do. There are several positive reasons you should consider downsizing your home, such as for easier management and cleaning, reducing the cost of your bills, and freeing up some capital. It can be a great idea to consider what downsizing is, how it can benefit you, and why you should consider making the change. Here are some top tips to help you get started.
What is downsizing?
Downsizing means moving to a home that is smaller than where you are currently. This decision is typically made by families who want to reduce costs, need a more accessible space to tailor to mobility issues or parents with children who have left home.
Benefits of downsizing
Regardless of the reason why you choose to downsize, you can reap a plethora of benefits, including:
- Reduced costs – smaller properties tend to have much cheaper gas, electric and council tax bills.
- Reduced maintenance – smaller properties are much easier to clean and maintain.
- Free up capital – smaller properties tend to be cheaper, which means you can release equity from your current property when you move. This can be quite a significant sum of money if you have lived there for a while, or the value has increased since you purchased it.
When is the right time to downsize?
The right time to downsize will entirely depend on your personal preferences. There may be certain events that signify you are ready to make the change, for example, your children have left home and you are paying for a large property unnecessarily, if you have a big purchase you want to make with your capital, or you are looking to save money.
Tips for downsizing
If you are ready to downsize, here are some of the things you should consider.
Sort your belongings
When you downsize, you are going to have to take time to sort through your belongings, as you will not be able to take everything with you. Declutter your home from items that you no longer use or that hold any value to you. You can then throw them away, sell them, or give them to charity. This will make the process of packing up, and moving into a smaller property easier. If you still find there are items that you don’t want to throw away, there are plenty of self storage solutions you can choose from.
Think about the type of property
Make sure you consider all of your needs and work out what your ideal home will look like. Moving house is not a quick or easy process, so you want to choose something that is going to set you up long term. Are you looking for a studio flat in the city, because you enjoy the hustle and bustle of the streets? Or would you prefer a quiet home in a rural area?
Sell before your buy
Market conditions can be difficult to navigate, but it can be much safer to sell before you buy your property. This will ensure you can benefit from the reduced costs and equity release as planned.
Downsizing your property can be extremely beneficial, and enable you to save money, and free up capital.