With the cost of living crisis rising, downsizing is becoming increasingly popular in England, and we can see why. Selling up a larger place and choosing a smaller home that is perfectly suited for you and your family offers a range of financial and personal benefits. You get the chance to start fresh in a new property or if you live alone, you can find something more suitable for independent living (a house that grows old with you). Also, if you live in a large home that has bedrooms sitting empty then you might be wasting money on utilities and upkeep, whereas, if you downsize, you reduce bills and free up equity. Before we get too carried away and list all of the benefits, creating a long scroll of pros, let’s not waste any more time (or words).
Let’s explore the benefits of downsizing, and start with the positive impact it has on your finances.
One of the main benefits of downsizing is how it impacts your financial savings. According to Halifax’s 2022 analysis of house prices of different sized homes, moving to a home that is one bedroom smaller raises £120,820. This includes releasing equity by selling a larger home (did you know that summer is the best time to sell your home?), moving to a lower monthly mortgage payment, or a combination of both. Another way it increases savings is by reducing utility bills and maintenance costs. This means your lawn and garden upkeep spend are lowered (that is a relief in itself). Moreover, it frees up capital that can be used to pay off debts, invest in retirement funds or give you the financial freedom to enjoy a more comfortable lifestyle. You could book that South African Safari, winter sun holiday you have been eyeing for years or that multi-generational family trip to Disney in Florida.
In addition to financial benefits, downsizing also offers a range of lifestyle benefits by reducing maintenance and cleaning responsibilities that come with a smaller property. We hinted at this above, but, let’s get into it. According to research by Bower Retirement, 68% of over-55s in England say they would like to spend less time on household chores. Downsizing frees up your time and energy to do just that. It gives you the chance to pursue hobbies and spend more time with loved ones. We know first-hand that one of our team members’ Aunt has downsized and is pursuing her hand at pottery making. She watched one episode of The Great Pottery Throwdown and that was it. She had to try it, but, before downsizing she had zero time. Now, she is doing it and it could not be possible without her making that conscience decision to downsize.
Another fabulous benefit is for you to live in a more convenient location. Many families and retirees are choosing to downsize so they can live closer to family and friends, local amenities, and public transport. This increases your social circle. Since Covid, being near a community, knowing that your loved ones are nearby, and having amenities on your door step are priorities. These have become the driving force for UK residents to downsize, regardless of age. It is life changing to have those things, and your family and friends, in the same area as you.
Furthermore, you might want to downsize so you can have a smaller flat or space that is uniquely you, without the clutter. Moving gives you that chance to sort through your belongings, and decide what is needed, and what you could pass on to another caring and loving home. It might sound strange, but, it is a good idea that if something does not “spark joy” then pass it on to someone that needs or wants it. For instance, that suit you haven’t worn in over 3 years, consider donating it to a charity shop, so, someone else can make use of it and enjoy it as much as you did.
Other benefits are if you currently live in a home of a certain age that needs improvements then you are not using your hard-earned money to fix it up, a house that you no longer have your heart set on. You want to experience that fall in love feeling with a house again. Right now, your current house is not doing that, but, downsizing might just bring back your mojo, and save you money too!
In conclusion, downsizing offers a range of benefits for homeowners in England ranging from reducing living costs, releasing equity from a larger property, decreasing maintenance responsibilities, and living in a more convenient that enhances your life and finances.
If you need any advice or would like to chat regarding downsizing and what it takes, let’s grab a cuppa together and talk. We can take you through the benefits, help you with a search, provide you with a property valuation of your current home, and help you through the entire process.
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