In a certain older market segment, downsizing is the biggest buzzword. It is the trendy thing to do after a lifetime of hard work once kids have moved out of the house. What does downsizing really mean and how can you do it right? Here, we look at the concept of buying to downsize and the various options available for someone who wants to downsize as well as the various ways in which you can go about it.
Downsizing your home simply means reducing the size of your home or living space. Most seniors will downsize by selling their current large home and purchasing a smaller home elsewhere.
Downsizing a home generally involves liquidating some equity in your current property and buying a smaller and cheaper property. Some people do offshore downsizing, moving to exotic locations where homes and lifestyle are cheaper.
It is not always price-oriented. Some people may sell a current large home and buy a smaller but costlier home somewhere because they like the location or the lifestyle. So the finances are not always a primary imperative for most seniors that downsize. The lifestyle choices generally play a central role in decision making when it comes to downsizing.
Downsizing also offers an opportunity to shape up your finances. A lot of research and planning should therefore go into your decision making. You have to think hard about your future lifestyle goals as well as your current financial life.
Making the Decision
The first step before you begin the process of downsizing is deciding on why you are actually downsizing. Downsizing is definitely not suited for everyone and people choose to do it for a variety of reasons ranging from the personal to financial ones. In most cases, people downsize to align their lifestyle to their retirement plans.
People can also downsize due to lifestyle changes. If all the kids have left the home and you no longer need that large house, you may consider downsizing and moving to a smaller apartment. Sometimes, your current house may be too huge that maintaining it is a nightmare. In this case, you may consider downsizing to more manageable spaces.
There are also a growing trend where many older people are living nomadic lifestyles travelling around the world. In this case, you may consider downgrading to a smaller apartment as you will not have much use for a bigger house.
You can also downsize for financial reasons by selling your current home and buying a smaller and cheaper home to free up some cash. Some also downsize for health reasons by moving into smaller apartments in neighborhoods where they can get a good support system.
Things to Do When Buying to Downsize
Here are some important factors to keep in mind when downsizing to a smaller home:
- Evaluate your current requirements and decide on what you need in your new living space.
De-clutter your items: If you are moving into a smaller space, you won’t need many of your current possessions. De-clutter by selling, donating or gifting these items to family members and friends.
- Create a list of the things that you will need in your next home inspections melbourne. Of course it will be less frilly so you will have to give up many of your current luxuries.
- Decide on the kind of property that will best suit your needs? Will you need an apartment, a condo or a small mansion? Do you want to live in a retirement village or a normal residential development?
- Identify and list all of your property inspections melbourne essentials such as the living space, location, accessibility and aspect among many others.
- Research the market thoroughly and hire a professional realtor to help you sift through the complexities of the real estate market. You will need to maximize on the sale price and the purchase price for your smaller property so a proper insight into the property market is of great importance.
- Find a suitable location that you will be comfortable with.
Look for professional financial advice when buying and selling to help you maximize on the on the sale and purchase price.