As people get older, it is becoming increasingly popular for them to downsize, and they find that a smaller property better suits their needs. Taking the opportunity to reduce clutter, costs and cleaning time is becoming a trend, allowing people to eliminate unnecessary items. However, finding the right time to downsize can prove difficult, and many people are unsure about exactly when to make this transition. Here are three questions you need to ask yourself when considering downsizing...
1. Have your children moved out?
One of the main reasons people choose to purchase larger houses is to accommodate a growing family, giving everyone their own space. But when your children have grown up and moved out it may be the right time to downsize, as you no longer need the additional bedrooms, bathrooms and large family garden. Downsizing means you won’t need to continue paying to heat these rooms throughout the year, and also saves you time and effort when cleaning.
2. Do you want to keep costs down?
Large houses are expensive to maintain, not just through utility bills, but also with insurance and tax costs. With a smaller home, you will save money both on monthly and yearly costs. This is especially important when approaching retirement, as the money you save can be put towards pension plans, funding your retirement or even going on adventures and ticking goals off your bucketlist.
3. How much is your current house worth?
After years of rising house prices throughout the UK, you might find that your home is worth considerably more than you realised, and has grown in value since you initially bought it. As such, you are likely to be able to find a smaller home and still have money left over from the sale of your previous house. Adding money to your retirement pot feels good, and you may be able to find somewhere without having to take out a mortgage, giving you complete financial independence. Selling your house can prove difficult though, and to avoid the hassle it is well worth considering companies that offer a home exchange scheme to aid you.
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