Downsizing (also known as “rightsizing”) means selling your existing family home and buying a smaller one with a lower median property price. It may be that your children have moved out, perhaps you need a house with fewer stairs or in closer proximity to amenities, or maybe the space and upkeep is simply too big for you now. Whatever the reason for your move, you can be rest assured that your local Raine & Horne agent is committed to helping you achieve the best possible price for your property and can even help you find the perfect next place to call “home”.
Before you embark on the exciting journey of downsizing, there are a few considerations you should consider, such as:
- How much space do you need moving forward? Perhaps you need less living areas and bedrooms
- Location, location, location. Which area do you want to move to? This could mean staying in your current neighbourhood, a tree change, a sea change or even relocating interstate.
- Emotional connection. The sale of your family home may be full of memories which can be difficult to let go.
- How much can I afford? Consider what kind of property you want to move into and account for the costs associated with living there such as body corporate fees/strata levies, utility bills, stamp duties council rates and insurances.
The benefits of downsizing
Downsizing is not a decision that you should make lightly; however, you should also take into account the number of benefits in making this move. These include:
Paying off your existing debts
The purchase of a smaller property can, in some instances, help to free up cash and make you more liquid. You may wish to use these funds to pay off any outstanding debts you have and help lighten your financial load for the years ahead.
Propensity to save
The purchase of a smaller and less expensive home to run could free up funds in your everyday life, and this may be extra money you could save up for your retirement or perhaps even a holiday is in order!
Reduced living costs
Once the costs associated with moving house and downsizing have subsided, you should look at whether you would be in for any long-term financial savings. Will your new home require less maintenance? Are you going to be closer to amenities and therefor spending less to get around? Many modern homes come with energy-saving fixtures, and some use solar power and recycled water where appropriate, this could mean a reduction in your utility bills.
Your new home
What are you looking for in your next home? You should take some time to list out the exact features and facilities you want your next place to include. These may be:
- Less square metres – you may wish to have a more manageable yard or fewer bedrooms and bathrooms to maintain.
- Accessibility requirements – do you need, or will you need fewer stairs in the future? You should consider planning for how mobile you will be in future years.
- Your dream lifestyle – Are you looking for a change in your lifestyle? Perhaps you have always dreamed of living closer to the water, or do you want to live in a building with amenities like a gym, pool and sauna? Think of what features you want your next home to have that will improve your quality of life.
Let’s get started
Once you know that downsizing is the best move for you, you should engage with your Raine & Horne agent who will be able to help you sell your home. Your agent should have a sound understanding of your local area and a robust plan to market your property to achieve the best possible price.
You can trust that your local Raine & Horne agent has your best interests at heart, we would, of course, encourage you to reach out to us if we can be of any assistance in your downsizing journey.