When is the right time to downscale?

When is the right time to downscale?

Category Top Property Tips

If the time is right, downscaling could be the best move that you make. There are many reasons why moving into a smaller home makes sense. For starters, there will be fewer rooms to clean and you will save on household bills. Profit generated from the sale of your big home could be a welcome cash injection to improve your quality of life.

Where downscaling was once thought of as something that you do when you approach retirement age or no longer needed so much space for children, the trend has shifted, and compact living is one of the fastest growing housing trends which appeals to a wide cross-section of people.

Why should you downscale?

A big house can become empty once the children are off to varsity or have left home. Less maintenance and household chores will leave you with more time to enjoy hobbies or interests which you might not have had time for.

Security can be a concern in a big house compared to smaller homes and apartment which often have a strong focus on security.

Lifestyle is a big consideration as you could move to an area which you might not otherwise consider, such as a beach suburb.

What you lose in size, you gain in lifestyle. Downscaling is also an opportunity for a de-clutter and cleanout. Due to demand, smaller homes often enjoy higher capital value appreciation.

Change is as good as a holiday and changing your home and lifestyle could be just what is needed to re-energise you.

When is the right time to downscale?

Trading in a big house for an apartment may actually mean trading up. The time saved on household chores and running a big home could be much better spent. There’s no need to feel that you give up a garden as you could now have the opportunity to explore more nature reserves and parks where you can enjoy greenery without the burden of maintaining a garden. Most smaller homes and complexes offer gardens, or you could take the opportunity to enjoy container gardening.

Typically downsizing is triggered by a life event such as children moving out or retirement, but it could also be triggered by the need for more security, a slower pace or just more leisure time.

Financial reasons could be important especially when running a big property becomes a financial strain. Then, it is time to re-evaluate and downgrade rather than risk financial distress. The financial benefits of downscaling extend beyond just the price of a smaller home as there are many household costs that you would save on.

If you are becoming concerned about security in your big home, then it is time to look into alternative housing solutions. Health and lifestyle needs are further reasons why people are increasingly opting for more compact living spaces.

Which property type should you choose and which location?

The property type will depend on your personal preference and lifestyle needs. For some an apartment offers the ideal lock-up-and-go solution while others might prefer a townhouse with a small garden.

Cost will be a decider in terms of the area. Work out how much of your profit you want to put into an alternative investment vehicle and how much you want to spend on your smaller home.

Do your research in terms of property types and areas. Visit property portals to see which areas offer a good choice of compact and smaller housing, take time to drive around areas and physically view the property. Chat to a local area agent for more insight into the choices on offer.

Author: Gina Meintjes