Downsizing your home is a really big decision. It often signals the end of one part of your life and the beginning of another.
There are many reasons people downsize. The children might have moved out, you might be looking for a lower-maintenance lifestyle or you might be looking for a completely new life. In some cases, people are forced to downsize for financial reasons – it might even be a combination of these factors.
Whatever the reasons, before you embark on a downsizing journey, it’s important to do some homework.
Evaluate your future lifestyle
Start the process by asking yourself why you are considering this move. What do you want and what do you need?
- planning for retirement?
- changing careers?
- moving to the regions or inner city?
- sorting your finances?
Finding your ‘why’ can help you work out what your new budget will be, what a new home might look like and where it could be located.
Consider associated costs
Moving into a smaller home doesn’t always mean you will be better off financially. Even if you make a profit selling your current home, you still need to consider the costs of buying a new property including:
- stamp duty
- moving costs
- building and pest inspection fees
- real estate agent fees
- potential bridging loans
- conveyancing costs.
Consider employing a real estate appraiser
An appraiser will provide an objective and unbiased estimate or appraisal of the value of your property. This should give you a clear understanding of how much your property is worth and how much you should have to spend.
More time and money
Downsizing your home may mean you have less maintenance to do around the home and more time to do the things you want to do! With a smaller home you may find that you will save on energy bills.
Do some research and create a list
Consider the things that you really like about your current location and write a list of all the things you would ideally like in your new environment.
Explore your options
Downsizing has gained popularity over the years, with 50% of those over 55 years old open to the possibility of moving to a smaller home. It’s important to note that there are no hard and fast rules about downsizing.
Monitor the market
It can be difficult to determine the right time to downsize as it depends on each individual’s unique circumstances, lifestyle needs and the state of the property market. Keep all these things in mind when making your decision.
Be cautious about buying before selling
Signing a contract for a new home while the sale of your current home is pending is not without risks. You may find yourself being forced to sell your property for less than you originally anticipated. Your lender or a trusted mortgage broker like My Local Broker might be able to help if you find yourself in this situation.
Decluttering your home can be an emotional experience! It’s important to remain practical when making decisions about what you really need or want to keep. If you’re undecided about what to do about seasonal items like camping gear, sports equipment or luggage, then you may consider looking into a long-term storage solution.
A trusted conveyancer can help
When downsizing your home, it’s likely you will need to pay conveyancing costs for two transactions – the selling of your current property, and the purchase of your new property. With this in mind, it’s important to engage a conveyancer who has your best interests at heart.
At Settle Easy, our conveyancers are on your side. You will be matched with an experienced conveyancer who can guide you through every step of the process. So whether you are buying property in Melbourne, Brisbane, Sydney or anywhere in Australia, get in touch with our team of expert conveyancers.
Follow us on Facebook.