The average person in Britain moves once every 23 years, so it’s more important than ever that our home is perfect for our lifestyle. Sometimes that means finding a bigger home for a growing family, but it works the other way, too. If a change in your life means that your home is too large, downsizing to a smaller property could be the perfect move.
Are you thinking of downsizing? We’ve weighed up the pros and cons to help you decide if it’s the right thing for you.
What is downsizing?
Downsizing simply means moving into a smaller property. This might happen if your family has flown the nest and you don’t need that much space, you want a property that’s smaller and easier to look after, or you’re looking for a more affordable home. In fact, there are hundreds of reasons why people choose to downsize – everybody’s different.
The advantages of downsizing
The biggest advantages to downsizing are:
- Your home is easier to maintain
- Your mortgage is likely to be smaller
- Your bills (such as utilities and council tax) may be lower
- If you’re a cash buyer, you may free up some capital from your last home.
By downsizing you may also be able to choose a location where services and local amenities are better, such as being closer to local shops, having more opportunities to socialize, and enjoying better leisure facilities.
The disadvantages of downsizing
While there are many great reasons to downsize, there are some disadvantages to think about too. For example, in order to get the property you want, you may have to leave the area you’re attached to. Only you can decide whether it’s worth the relocation.
Downsizing also means going through the buying process, which can be a little stressful if you haven’t done it for a while. But remember that your estate agent will be used to helping downsizers, and they can guide you through the whole process.
As well as the cost of your new home, the moving process will cost money. While you can probably cover this with the sale of your current home, it’s worth working out your budget beforehand to help keep things under control.
Alternatives to downsizing
- Remortgaging
If you find that your mortgage is getting too much, you might have the opportunity to remortgage. In some cases, this means a lower rate that’s easier on the pocket. If you’re thinking of remortgaging, try comparing deals with Mortgage Match. It won’t affect your credit score, and you’ll have an expert broker on hand when you need them.
- Renting out a room
If you have a spare room, consider renting it out. You can make up to £7,500 tax-free from renting out a room (or any part of your house, as long as you’re living in it), which works out as £625 a month. It’s an easy way to increase your income, and if your house feels empty, a long-term guest could be the answer you need.
- Simply staying in the same place
The upside of staying where you are is that’s it’s simply easier. You know your neighbours, you’re familiar with your home and your surroundings, and you know your area inside-out. On top of that, you don’t need to go through the stress – and expense – of moving.
You may also find that having a spare room or two is useful, especially if you often have guests, or in the event that children move back after university.
So should you downsize?
Of course, the decision whether to downsize or not is a very personal decision, and only you can say what’s best. It remains a popular option for many people whose families have grown and left, or for those entering retirement – and for good reason!
If you’re thinking of looking for a smaller home, start by finding out how much you could get for your existing property. Your local Yopa agent will be more than happy to visit for a free, no-obligation valuation at a time that suits you.
