Although it may sound overwhelming, there are many benefits of downsizing house. It can serve as a starting point for a new chapter and provide a positive experience, despite the initial stress.
Downsizing not only provides a fresh start but also offers tangible benefits. It helps in reducing costs, increasing free time, and minimising stress. It can be a positive experience when moving from a house to an apartment, villa, townhouse, or even a retirement village.
Deciding to move can be difficult, but once you leap, you can experience the benefits of downsizing from a larger property to something more manageable.
Downsizing House: Meaning
Downsizing refers to the process of shifting from your current residence to a smaller one, and there are two primary categories of downsizing: physical and financial. In general, downsizing involves selling your existing property and acquiring a new one.
Physical Downsizing
Physical downsizing refers to selling your current home and moving into a smaller one, which could mean opting for a home with fewer bedrooms or a smaller block of land with less garden and yard space.
Financial Downsizing
Financial downsizing doesn’t always mean moving to a smaller house but instead selling your current home and buying a less expensive one. Cheaper homes in a new area might be larger than their previous one, but due to the lower property cost in this new area, it is still considered a financial downsizing.
Pros and Cons of Downsizing House
Downsizing has many advantages, but it’s essential to consider the consequences before making the shift. Remember that moving to a smaller home requires adjustment since you’re giving up a bigger living space.
Pros
Downsizing can help reduce stress by giving you less responsibility and a smaller workload while increasing your cash flow and flexibility. This also allows you to have more fun, spend time with family, get more rest, and enjoy your home instead of being overwhelmed by it. Here are some benefits of downsizing house:
Free Clutter
Downsizing to a smaller size home allows you to simplify and minimise your belongings. As we get older, we tend to accumulate furniture and sentimental items. Moving to a smaller home requires letting go of some possessions, but it also presents a fresh start.
They can pile up and become a burden if you don’t have a good reason to keep things. Downsizing means choosing the most essential possessions and eliminating anything that no longer serves a purpose.
More Free Time
When you have a smaller home, you can spend less time doing household chores like dusting, vacuuming, mowing the lawn, and watering the garden. This means you’ll have more time to pursue your passions and hobbies.
Having free time allows you to try out new hobbies such as surfing, playing tennis, or joining a book club. It also allows you to spend more time with family and friends, which can help improve your relationships and enable you to appreciate the little things in life.
Fewer Expenses
Living in smaller spaces is typically more affordable. As a result, you can allocate your money towards other things instead of a hefty mortgage payment.
Lower Bills
One advantage of downsizing is that a smaller home will have lower monthly costs since you’ll only need to heat, calm, and power a smaller area compared to a larger home with multiple living zones.
Notably, having a smaller home reduces expenses across various areas, such as energy bills and maintenance costs. Furthermore, one can save money on insurance costs as well.
Lifestyle Change
One of the great benefits of downsizing is the lifestyle changes it brings. As mentioned, downsizing allows you to devote more time to activities you enjoy. Additionally, it provides more flexibility when taking weekend getaways or extended vacations.
People who have experienced downsizing from house to townhouse can quickly go on holiday without worrying about finding someone to care for the garden and the house. They can simply lock up their place and enjoy their vacation with minimal fuss and hassle.
Cons
Downsizing can be challenging, just like any other major life transition. However, there are strategies you can implement to reduce stress before and during the move.
Costs of Moving
If you don’t have anyone to help you, hiring a top removalist is recommended to move your belongings to your new home. Do some research and compare different removalists. You may also want to consider giving away furniture or appliances you no longer need, as they can help you save money.
Adjusting to New Space
Adjusting to a smaller living space can be challenging if you’re used to bigger homes. However, consider focusing on the benefits. Investing in experiences rather than material possessions can create joyful, enduring memories that foster happiness and encourage social connections.
Looking for The Right Home
It’s common to feel emotional when leaving a family home, but finding a new home that meets your needs can be even more challenging and can be a barrier to downsizing.
To simplify your life when researching homes, consider the following:
- Find a home without stairs or steep driveways.
- Choose a “lock and leave” property with advanced security. and
- Move closer to your favourite places.
Consider your priorities and identify which neighbourhoods or communities would be best suited for the lifestyle you envision.
When to Downsize Home
There are various reasons why people decide to downsize. It could be due to having an empty nest and a home that needs a lot of maintenance, or it could be prompted by loneliness, divorce, accessibility, or the passing of a loved one.
It would be beneficial to research your preferred living location and the type of property that suits you and assess your possessions realistically before considering downsizing. However, you are free to downsize whenever you want and find out when’s the best time to move.
When people plan to move to a smaller place, they may be surprised by how many possessions they have accumulated over the years. It is advisable to begin deciding what items to keep as soon as you start thinking about moving. Dispose of or donate anything no longer needed before putting your home up for sale.
Considerations to Think of Before Downsizing
When planning for retirement, it’s important to consider your lifestyle, level of independence, and budget to choose a home that fits your needs.
If you are thinking about relocating, you should take into account certain expenses such as:
- furniture removal
- stamp duty
- real estate agent fees
- buying and selling in the same market
- legal fees
Alternatives to Downsizing
If you choose not to downsize, there are other options to consider if you want to remain in your current home.
- Renting
- Consider converting your home into a duplex or a multi-family property, where you can live in one unit and rent out or sell the other.
- Investigate whether a reverse mortgage or a home reversion would be a good fit.
Before proceeding with any of these choices, assess the tax implications and potential impact on government benefits.
How to Downsize to A Tiny House
Step 1: Take a moment to reflect on why you are considering downsizing. Do you feel it is necessary? Are you content with this decision? Have you explored alternative solutions?
Step 2: If you are considering downsizing, it’s important to decide on your desired location. Would you like to stay in your current area and move locally, move to another suburb, move interstate, or move to the seaside? Perhaps you would like to purchase a luxurious flat in the centre of town.
Step 3: Consider what properties suit you and if they fit your budget. Do you need to make any trade-offs, like downsizing from house to condo, or are several options available?
Step 4: Before selling your property, consider whether you want to pay off your mortgage ultimately.
Step 5: To save money on removals, you can declutter by donating or giving away items to family members. Separate the things you love and need from those you no longer require. It’s a chance to clear out everything.
Step 6: Get your home ready for sale.
Step 7: Begin looking at properties you prefer. Start viewing tiny houses.
Moving Mates Can Help You In Your Downsizing Journey
To fully experience the advantages of downsizing, assessing if a smaller home would suit you and enhance your lifestyle is important. Simply downsizing to save time and money won’t be worth it if you’re unhappy with having fewer bedrooms or living space.
Once you have decided that a smaller residence will suit your current lifestyle and future goals, you will be able to appreciate the benefits that come with it entirely. You will enjoy the fresh start that some can only dream about.
Are you downsizing to a smaller size home? Moving Mates can assist you in making your move hassle-free. Our team of professionals is reliable and capable of handling your most valuable items. Contact us if you’re searching for a trustworthy removalist.
