Your children are now all grown and they are starting a family of their own. This big, old house that you now live in seems empty, even though it is filled with memories. Youre also finding it difficult to look after. So youre thinking about downsizing. But, you are also concerned that youll make the wrong decision, and then regret it later.
So before you make a move, lets look at the pros and cons of downsizing. This way you can determine if it is right for you.
The Pros of Downsizing
There are a number of advantages to downsizing.
These are as follows:
Financial Gains –Usually a family home is far bigger than a home for a couple or an individual, so by downsizing you are able to reduce your living expenses. These include council rates, utility bills and overall maintenance costs.
More Me Time -It takes time and effort to maintain a larger property. Tasks such as painting, cleaning, gardening and daily maintenance all reduce your personal leisure time. So by moving into a smaller property you will free-up your time, and daily chores will be easier to carry out.
Reducing Clutter -When we have a bigger home, we tend to fill it with more furniture and personal items. So downsizing can be the perfect time for you to minimise your household clutter. You can then sell your unwanted items and save the money for something special for your new home.
New Beginnings -When you sell a home and move to a new location this typically means meeting new people and starting afresh. This is a fantastic time to start a new lifestyle, meet new neighbours and possibly new friends. It also gives you an opportunity to explore new areas, which can be invigorating for the mind, body and soul.
Family Bonding -A smaller home typically brings family together and this then gives them an opportunity to discuss more and to connect on a deeper level.
The Cons of Downsizing
There are a number of disadvantages to downsizing.
These are as follows:
Moving Costs -While you can save money when downsizing, you will also find that it will cost you to sell your existing home, and to buy a new one. These costs include removalist fees, disconnecting and reconnecting utilities, legal fees and agent fees when selling, and legal costs and stamp duty when buying. These costs can add tens of thousands of dollars to your moving costs.
Finding a New Home -Its often difficult to find the right property, one that has all of the features you need and want, and one that is appealing to your tastes. You may have to compromise and even change dcor and other aspects of the property to meet your requirements. You may also want to move to a specific location, but find that this area is no longer affordable. This will mean that you may have to seek a property nearby.
Moving to Unfamiliar Surroundings -When you move to a new area it can take you time to adjust and for you to become familiar with the surroundings. If you know where the shops, service station and your friends are in relation to your old home, then this can make the period of readjustment harder when you move to a new property.
Affairs of the Heart -If you love the home you live in now and have fond memories there, then saying goodbye can be difficult. This is when you have to think about whether the emotional pull is stronger than the practicality of downsizing. After all, you need to consider your health and happiness when you downsize.
Leaving Your Lifestyle Behind –If you have a home with a swimming pool, spa, gym and a music room, then you may not be able to have all of these luxuries when you downsize. Therefore, its important for you to consider how much of your lifestyle you want to change before you make the move and downsize.
Are you consideringdownsizing or upsizing? Then contact eChoice, we can help you find the right home loan for you.
Written by eChoice
Since 1998, eChoice has helped more than 50,000 Australians secure a home loan through its network of over 25 lenders and hundreds of loans. Best of all our service is cost and obligation free!