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🕑 6 minute read
Downsizing to a house smaller than your current home might seem strange after climbing the property ladder. Why build up to owning a decent sized home with ample space, only to then take a few steps backwards?
If your needs and priorities change, a smaller home may suit your new lifestyle. In some cases, it can also free up cash and save you money.
There are many advantages to switching to a smaller house, yet it really depends on what stage of life you’re at and what you want from your home.
Benefits of downsizing
Considerations when downsizing
If you own your property outright and have completely paid off the mortgage, you may be able to free up money through downsizing to comfortably enjoy your retirement. It’s one of the main reasons many people consider downsizing.
Say you live in a three-bedroom detached house in the city and your children have left home – you no longer need all the bedrooms. Selling this property and moving to a two-bed bungalow closer to family, could free up equity.
You'll need to pay for general moving costs, stamp duty and solicitors fees, but the rest will be your money to use as you please. House prices can fluctuate over time, so impartial financial advice could be useful if you’re thinking of selling.
Further savings from downsizing
There are a few other ways downsizing could help you save money:
There are many possibilities when it comes to downsizing. These are some of the main options for downsizing:
Preparing to move home always requires some level of decluttering. When you’re getting ready to downsize it’s even more important, as you may not physically have enough room in your new home for everything in your current one.
There are a few things you can try to make decluttering a success: