How to downsize with ease
The property journey tends to mirror life events, which means at some point there may come a time to move from a larger home into something smaller.
And it’s a shift that can potentially be both emotional and stressful, signalling the end of one chapter and the start of another.
So how do you go about managing that transition? Here, we offer our top tips on how to downsize with ease.
What prompts people to downsize?
While the concept of downsizing is often associated with retirement, the reality is a raft of things prompt people to downsize and it can happen at any age.
Maybe you want to travel more and want a property you can lock and leave. Perhaps, your children have flown the nest, or maybe the end of a relationship sees you looking for something smaller.
Maybe you’ve had enough of weekends spent gardening or perhaps you just want to live in an inner-city apartment rather than a house for a change.
Whatever the reason, the process doesn’t have to be stressful if you have a clear idea on the outcome you want and the steps you need to take to get there.
Step 1 – Know your goal
Long before you start looking for properties to downsize into, get crystal clear on the type of property you want and the features it should have.
The best way to start this process is with a list of non-negotiable property features that are definite requirements and then other things that you would like to have.
Things you might want to factor into your list include:
- Property type
- Location
- Required amenities
- Number of bedrooms and bathrooms
- Accessibility
- And more
Step 2 – Consider your future needs
When weighing up property types and making your list of features, be sure to factor in the future as well as the present. For example, what things might you need in five or 10 years’ time?
For example, a multi-level property might be fine for now, but are stairs something you want to be navigating in a decade?
Step 3 – Know your budget
Budget is a huge factor in any property purchase, including downsizing.
Ensure you are crystal clear on the money you will have available to buy your downsized property, while factoring in any other areas where you intend to direct funds.
Step 4 – Know the path forward
Will you be selling your current property, or will you retain it as an investment? What are the tax or financial implications of this next stage in your property journey?
Make sure you consult with the right people, including your financial or tax advisor and a trusted real estate agent to help plot the path forward.
Step 5 – Preparing to make the shift
If you are selling your existing home, what will need to be done to it to ensure it commands the highest price possible?
If you’re renting it out, are there also things that need to be done to make it attractive to renters and cost effective in terms of maintenance?
Meanwhile, downsizing by nature involves moving into a smaller residence, so preparation for this involves decluttering, including sorting through your possessions and furniture to donate, sell, store, gift or throw out the things you no longer need.
