Why Downsizing Might Be Right For You
By Sean Ford | August 27, 2014
Most of the time, people move house to move up the property ladder but there is an increasing trend for people to downsize to a smaller property. There are many reasons that this might be a good idea for you to consider – let’s take a look at five common scenarios that lead to the decision to downsize.
1. Empty Nest syndrome
Probably the most common reason for downsizing is once children have grown up and left home. A large four bedroom house is idea for a family of four or five, but once there are just two people living there, is it really necessary? Downsizing for this reason can be quite an emotional decision, as there are a lot of memories tied up in a family home.
2. Less upkeep
Moving from a large house to a smaller house generally means that less maintenance and upkeep is required. Add into the mix that smaller houses normally have smaller gardens and you’re potentially saving a whole lot of DIY and gardening work by making the move to a smaller property.
3. Reducing monthly outgoings
If you are looking to cut your monthly outgoings, then moving to a smaller property is one way of achieving substantial savings. Smaller properties generally mean smaller bills all round, including lower council tax, energy bills, insurances and, of course, lower mortgage or rental costs. Other bills such as phone, broadband and TV will remain the same, but the overall monthly savings that can be achieved by downsizing are not to be sniffed at.
4. Releasing capital
Many people use downsizing as a way to release capital from their larger property. There are many reasons you might want to do this – from generating money to buy a second property, releasing some funds for retirement or to simply to reduce or remove the need for a mortgage. Selling your large property and moving to a smaller one is a popular and relatively straightforward way of accessing any value that your larger house may have accumulated over the years.
5. Change of lifestyle
Some people choose to downsize for no reason other than to make a lifestyle change. For example, perhaps moving from a reasonably sized, cheaper property in the suburbs with a long commute to a smaller, but often more expensive, pad in the city, where they can enjoy the benefits of a short commute to work and all the fun and culture that city centre living can offer.