Our lives can change in unexpected ways. Some changes are natural, expected and sometimes welcome, like becoming an ‘empty nester or reaching retirement. Some are more challenging circumstance adjustments, like a relationship coming to an end or a change may come from deciding to embrace a simpler lifestyle. There are many circumstances where downsizing your home can benefit your lifestyle and open up a world of new and exciting possibilities.
So what does downsizing your home actually mean? Downsizing is when you buy a smaller home than the one you currently occupy. Whether the kids have flown the coop, or you’re tired of dealing with the ongoing upkeep of your home, or perhaps you’re finding costs spiralling this can be a good time to reassess what you need from your house and the alternatives available.
While change can be a daunting experience for some, in many cases, it is a brilliant opportunity filled with new and exciting possibilities. Downsizing doesn’t mean down-speccing and some people take this opportunity to build a new, luxurious home that’s a little more manageable. In this article, we have outlined a list of factors that may help you in considering selling up and downsizing your home.
Profiting by selling your current home
Downsizing your home can help your finances in a number of ways. From consolidating your debts to releasing some spare cash to treat yourself downsizing can help you achieve new financial freedoms too.
The real estate market changes over time, often with prices increasing (which is great news for homeowners). Downsizing your house at the right time can mean paying off your remaining mortgage and buying your new home outright, affording a new smaller home all while pocketing some profit at the same time. According to Opes Partners, from February 2020, the median house price in Taranaki was $412,000, up from $282,000 10 years earlier. That means that the median Taranaki property increased in value by 3.86% each year, or $13,000 on average. That is an excellent investment if you have been living in your home for 10+ years.
Downsizing your home doesn’t necessarily mean moving into a smaller home, it could mean moving to a new area where your mortgage will be significantly lower, but where you can still enjoy your lifestyle.
Once you decide to make a move into a smaller home, you could automatically realise a reduction in your expenses. These financial benefits can include lower or even no mortgage repayments, smaller rates bills, reduced insurance and also power costs. If you have ever lived in a large home, one of its downsides is the energy costs that it takes to keep a house warm during the colder months and cool during the summer. Additionally, downsizing to a smaller home can also give you the benefit of reducing your household's carbon footprint thanks to lower energy consumption
Maintenance costs can also be reduced as the requirements to manage a smaller property are reduced; this means that there will be fewer repairs, both short and long term and when something does need work it might not be as big a task to undertake.
There’s also the time cost to factor in. Large lawns and luscious flower beds might be ideal as space for kids to run around in but the contact upkeep can drain hours from the day. A smaller property can still offer the green-thumbed owner a relaxing distraction, while not requiring quite the time or labour investment of a larger property.
Create a new chapter
New beginnings in a different home can enable new memories and associations to form. Not only can a change of scenery be incredibly beneficial for many people but also the move might present the opportunity to be closer to significant ones and places that you enjoy. As well as your new financial freedom and more time on your hands, you can start to explore those dream projects, which may have been on the back-burner for decades. From new hobbies to learning new skills now might be the perfect time to set up a dedicated space at home to explore the possibilities of realising your dream.
And don’t worry about losing the family memories that have been meticulously accumulated over the years, it pays to always remember that no matter where you call home, there are always new memories to be made.
Opportunity to create a new interior style
A new home offers the opportunity to renew the interior space to a new style. Whether it’s updating the physical aspects of the home, such as a fresh coat of paint, new curtains or updating furniture pieces, it can be exciting to create a modern space that reflects your individual style and flair. With a new home, you have a blank canvas to enjoy and make your own.
When designing your new surroundings, you have probably already considered decluttering your space. Over the years, it is easy to collect lots of different useful and not so useful items, and these can be challenging to part with at times. That is why downsizing presents the perfect opportunity to reassess what’s important and rid yourself of the things you no longer need. Moving into a smaller home is a great time to sift through and dispose of that unnecessary clutter. One thing to always remember is that a home is a long term investment. You will probably spend many more years to come in it. If you can afford it, spoil yourself a bit, and make sure that you create a comfortable space that you will be sure to love.
If you are ready to write the next chapter of your life and you’re thinking about selling your home and downsizing your lifestyle our team of trusted and experienced salespeople can offer a free no-obligation appraisal of your existing home to help you understand just how much your property may sell for in the current market. Contact us today by clicking here or on the link below.
Just remember, taking change as an opportunity may result in a more abundant life full of exciting experiences.