There are multiple reasons to consider downsizing to a smaller home. Usually the main reason for downsizing is when children have grown up and left the nest. Other reasons for downsizing include releasing cash and equity tied up to the property, in order to increase their finances. This could be to help children go to university or even to help them put a deposit down on their own place.
However, another reason for downsizing is retirement. People tend to have gathered a lot of assets but in terms of actual cash they do not have much. So, by selling their larger home they have extra money available to boost their pension.
Money is one of the main reasons people downsize. Homeowners buy a cheaper house to help reduce the monthly outgoings and to save money to pay off and debts and outstanding bills.
People tend to find themselves “asset rich and cash poor,” if this is a situation you’re in if you’re over the age of 55 and have a UK property worth £70,000 you may be able to release equity in your home.
Aid health issues
Some homeowners who have health issues tend to move to a smaller home to reduce strain. If you struggle to walk up and down stairs getting a bungalow may be easier to live in. However, depending on the severity of the health issues, it may be more beneficial to live in a retirement home.
Easier home to maintain
Having to decorate, repair and clean a large home can be expensive and very time consuming. Downsizing for older people can be a sensible option. This will also mean you will have more free time to do other things.
What to Consider
Before purchasing make sure the area you move to is friendly and has easily accessible transport links and amenities. Also, is this house suitable for you and your future? Is there a spare room for family members who come visit? You need to make sure you have thought about all aspects before making a big change.
Make sure you receive financial advice before making any new home purchases and think about how it will benefit you in the long term.
If you are looking to sell your current home to downsize, please do get in touch with our team here.