Downsizing generally involves moving to a smaller home, but the reasons for doing it can vary widely.
Maybe you want to free up some cash after paying your mortgage for years, or reduce your monthly bills with the cost of living going up? As you get older, your current place might feel too large, too expensive to run, or be in the wrong location.
So, let’s dive into what downsizing really means and check out the different options.
What is downsizing?
Downsizing involves changing the size of your home to suit your current or future needs more effectively. This often means moving to a smaller or cheaper property after your children have flown the nest, or when you’re preparing for retirement.
Five ways to downsize
1. Traditional downsizing
The most common form of downsizing involves moving into a smaller home. This could mean fewer rooms, smaller rooms, or single-storey. This often appeals if you’re looking to reduce your outgoings, such as your monthly mortgage payments (you may even be able to go mortgage free), utility bills and property maintenance costs.
2. Buying with family
Whilst not technically downsizing, there has been an increase in family generations moving in together. This often involves family members, such as grandparents, adult children and their families all living under one roof – usually one that’s larger than where they’ve lived previously, to accommodate the larger family unit. This can provide social benefits, as well as sharing responsibilities and costs. It can also provide you with a supportive living environment, which can be especially advantageous as you age, and offer mutual benefits to family members with childcare responsibilities.
3. Relocating to be near family
This can be a driver for many people approaching or in retirement. It may involve moving to a smaller house in a more expensive area, but while your house size may decrease, being closer to family can improve your quality of life (most of the time anyway!).
4. Retirement communities
These communities are specifically designed for independent retirees but cater for those needing some level of support or care. They can provide peace of mind, as well as chances to socialise and access tailored facilities. The costs, services, and the extent of the care provided varies widely though, so it’s crucial that you do your research and choose one that works for you.
5. Co-housing and shared living arrangements
Co-housing or shared living arrangements involve moving into a community where you share common spaces with multiple families or individuals, whilst having your own private living area. You can enjoy a sense of community, reduce your living expenses, and benefit from mutual support. If you like socialising and want to be part of a supportive network it’s worth considering, although some people may find sharing their space a challenge.
Making the right choice
Downsizing isn’t a one-size-fits-all thing. Choosing the right property involves careful consideration of your current and future needs, your financial situation, and personal preferences. It’s important to weigh the pros and cons of each option and think about the long term.
Speaking to estate agents, financial advisors, or care specialists can provide valuable insights and help you makean informed decision. It’s also worth considering how each option makes you feel alongside the more practical arrangements. What may sound good in theory, may not always be the best option for you.
Whatever you choose to do, the key is to find a home that fulfils your needs and improves your quality of life. Good planning will allow you to take your time and explore the possibilities, helping you to make the best choice for you.
This blog is taken from our Guide to Downsizing Your Home, where you can find information on everything from the financial considerations involved, to how to approach the topic with family.
