Downsizing can be exciting but may also feel a bit daunting. Whatever your reason for downsizing, there’s a lot to consider before you take the plunge.
The benefits of downsizing
First, let’s think about some of the potential benefits of downsizing:
Financial savings
- A smaller property could reduce your mortgage or pay it off entirely.
- Living in a smaller property could also reduce your utility bills.
- Smaller properties can mean decreased maintenance costs, as you’ll generally have fewer rooms to decorate and furnish.
Lifestyle
- With fewer responsibilities at home, you could have more time and freedom for your hobbies and travel, or to see family and friends.
- Selling a larger home might mean you can afford a smaller place in a more desirable location, closer to your family, with better amenities, or somewhere more scenic.
Simplified living
- Downsizing encourages you to declutter, which can make your home feel more organised and manageable.
- Smaller homes tend to be easier and quicker to clean and maintain. Although that might also be the effect of any children moving out!
The unexpected benefits of downsizing
While downsizing has some obvious benefits, you might find there are unexpected advantages that you hadn’t initially considered:
Better health and wellbeing
- A smaller home that needs less maintenance can reduce your stress levels and increase your overall wellbeing.
- Downsizing can encourage you to adopt a more minimalist lifestyle, meaning you buy less and reduce waste wellbeing.
- Downsizing can help you adopt a more active lifestyle, as you may move somewhere that means you can walk to your hobbies or the local shops, rather than driving.
- Moving to a more community- focused neighbourhood can lead to better social connections and a stronger sense of belonging.
Helping the environment
- Modern, smaller homes generally consume less energy, so they’re more environmentally friendly. Many new builds are rated A or B which means they’re more energy efficient.
- Downsizing can encourage you to adopt a more minimalist lifestyle, meaning you buy less and reduce waste.
The downsides of downsizing
It’s important to be aware of the possible downsides of downsizing as well:
Emotional attachment
- Parting with a home that’s full of memories can be emotionally challenging for many people.
- Downsizing means you’ll need to adapt to having less living space, which may take some getting used to.
Practicalities
- Having a smaller home means you’ll have less space for your belongings. You may find this an exciting challenge, but many of us are sentimental. Some downsizers consider renting additional storage space if they can’t bear to part with certain things.
- A smaller home may mean you don’t have enough space to host guests, so you may end up visiting other people more often. Or you may decide to chip in for them to stay near you instead.
Financial costs
- Relocating can be expensive, once you factor in the cost of selling your current home, buying a new one, and making the move. Make sure you factor in all your expenses, such as estate agent and legal fees, stamp duty and moving costs, so there are no unexpected surprises.
- The property market can negatively impact the financial benefits of downsizing. This is particularly relevant if the market is unfavourable for sellers at the time you decide to move.
- If you choose to move to a sought-after location, you might find that even smaller properties are as expensive as where you currently are.
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.
