Downsizing is a trend that is currently very much in vogue, particularly among the over 55's and retirees whose children have flown the nest and who now have less need for extra space and bedrooms.
Put simply, downsizing is when people move from a larger house to a smaller abode – so, for example, from a detached house to a bungalow or a townhouse to a flat. This is usually for financial reasons, as moving from a bigger house to a smaller house is a good way of saving money.
The act of downsizing has become a major part of the sales market in recent years. It’s important to bear in mind that there are both pros and cons to this growing trend, though. Below, using our experience as estate agents working all across the South of England, we outline what some of these are.
The Pros
In these more austere times, where the cost of living is outstripping wages for many, the benefits of a smaller house speak for themselves. Lower utility bills, lower maintenance costs and lower mortgage repayments will all help to leave you more financially secure while also freeing up extra funds to spend on various recreational activities. In fact, Lloyds Bank’s Downsizer Report for 2014 showed that those downsizing from a detached to semi-detached property freed up an average of £121,686 and those moving to a bungalow from a detached home raised an average of £103,715.
Additionally, downsizers have the advantage of less housework and not having to worry so much about the upkeep of large gardens or big heating bills.
Downsizing is also the perfect excuse to declutter. As well as being a therapeutic exercise, it will also allow you to get rid of all those unnecessary items that haven’t yet made it to the charity shop. With less space in your new house, you’ll have to be discerning about what you take with you – this is a great way of working out what’s worth keeping and what isn’t.
The Cons
Moving house can often be a very expensive undertaking, with stamp duty, conveyancing quotes and costs and estate agents’ fees to be factored in. This can, in some cases, significantly reduce the amount of money downsizers make from their transaction.
Furthermore, a smaller house means a more confined living space. You’ll have less room for your belongings and will have to adapt to more restrictive living quarters. Whilst this isn’t the end of the world, it could have an effect on your ability to entertain or accommodate house guests. For people in or reaching retirement age, this is quite a big consideration to bear in mind.
Downsizers may also suffer financially in the long-term. There are more people downsizing than buying larger homes and there is a dearth of people looking to get on the property market, which means that downsizers might have to accept less than their asking prices when they trade up.
Lastly, those eager to downsize need to consider the emotional ties that come with moving house. Downsizers are likely to have lived in their property for quite a while so the strain of leaving a beloved house should not be underestimated.
Prospective sellers need to think carefully and weigh up all the costs before they decide to downsize. You need to ask yourselves the following questions: will we have enough space for our possessions? Are we going to miss the extra space provided in a larger house? Will we be worse off in the future?
Please get in touch with ChimneyPots Estate Agents on 08448 099931 for advice on buying and selling property. What’s more, you can find out how much your property could be worth with our instant online valuation tool.
http://chimneypotsestateagent.co.uk/
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