Okay – so maybe you don’t live in an abode that’s quite the size of the one in the photo, but that doesn’t mean that there isn’t space for downsizing.
The benefits are seemingly obvious. The biggest being the capital raised after the sale of the larger property. Even once a smaller home is purchased, hundreds of thousands of pounds could remain. This could be used for everything from topping up your pension accounts to preparing for later life care costs.
The second most benefit is that a smaller property is usually much easier to maintain, both physically and financially. This becomes even more important as we get older and feel the effects of our health concerns more overtly.
Thirdly, if you’ve raised a family who have since flown from the nest, a larger house can seem more empty – perhaps even increasing the chances of feeling lonely and depressed.
But, as with everything, there are considerations to make before downsizing.
Are you ready to part with the family home? Let’s not pretend that sentimentality doesn’t play a part here. If you’re not emotionally ready, then maybe it is not the right time. Talk to your family and discuss it to get assurance that you’re doing the right thing. The goal here is to make your retirement as comfortable as possible and they should understand this.
Also concerning is that many don’t consider the full cost of selling and buying property, and can end up with less money afterwards than they envisaged. Make sure you list out ALL costs and stick to your budgets. Resist the temptation to buy ‘dooer-uppers’ that require significant investment and don’t rush out to spend any lump sums all at once. This money should be made to last if you don’t already have sufficient provisions.