Downsizing during retirement can be a great option for many people, especially for those looking to save money and enjoy the benefits of having a bit of extra money from the sale of their current home.
What is downsizing?
Downsizing is simply when you buy a smaller house than the one you have now. Many people choose to downsize when they no longer need the space their house offers, for example, when children move out or when they no longer require an office. Sometimes people will downsize if the upkeep of their current house is too much or it is just too costly to keep it running.
Alternatively, someone may simply want a change in their life, maybe they are looking to move to a different area whether that’s to live in an area they love or to be closer to family. There are many different reasons you may choose to downsize, but if you’re still unsure of whether it’s the right option for you, we can help. We’ve listed below some pros and cons of both to help make your decision a little easier.
What are the advantages of downsizing?
There are a lot of advantages to downsizing your home once you retire, especially if you’ve been in your current home a while. Most properties will increase in value from the day of purchase, which means buying a smaller, cheaper property can leave you with lots of equity left over to spend on whatever you what – whether that's the dream car you’ve always wanted or the perfect holiday adventure.
Buying your home in cash can give you more options, make the process of buying a new home a lot quicker and live without the stress of having to pay off a mortgage each month.
Having a smaller home will most likely mean there is less upkeep, lower running costs which means you’ll have more money and time to do the thing you genuinely enjoy.
If you do decide to downsize in retirement it can be the perfect opportunity to think about any changing needs and requirements as you get older, for example, instead of having a house with lots of steps or a large garden you can choose a house you love yet it more suited to you and your lifestyle than your current home.
What are the disadvantages of downsizing?
Even though there are many advantages to downsizing, there may be some disadvantages. For example, if you’ve spent your whole life enjoying the benefits of a big home with lots of space then you may not want to just give it up, even though you’re in retirement. If you’re wanting to move but don’t want to sacrifice space, many properties don’t sacrifice space but are better suited to your changing needs and wants.
If you are opposed to the idea of downsizing, there’s no real need to, the choice is completely up to you. If you don’t want to downsize but are still looking to move, you may find that your property has increased in value, which can give you more freedom and some extra money when purchasing a new property or you may choose to buy a cheaper home and still enjoy having some extra cash to spend on what you like.
When should I downsize?
When you decide to downsize is completely up to you, you may find that you’re finding it harder to look after your home or your garden which may provide some motivation to start the process. If you are thinking it is a decision you want to make or a decision you think you’ll want to make in the future, then it might be worth researching where you want to live or what kind of property you’re looking for.
Moving to an Inspired retirement village
Here at Inspired Villages, we have many different types of properties all over the UK, from Exeter to Warwick. If you’re looking to move and considering a retirement village, we can help you find the perfect property whether you choose to downsize or not.
One of the best things about moving to one of our communities is that it is more than just a village, there are several other benefits including spas, pools, gyms, restaurants, and also a great sense of community.
If you’d like to find out more about us and the benefits and attractions of renting or buying a home in an Inspired village, get in touch today or read our blog on the benefits of living in a retirement village.
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