A guide to downsizing for retirement
Downsizing is becoming more popular for retirees. Is downsizing for everyone? Here, we will look at the opportunities for downsizers and how they can go about it.
What does it mean to downsize?
Downsizing is the reducing of the size of your home. It basically involves selling your current big home and moving into a smaller cheaper house.
By downsizing many people convert excess equity in their property into cash. However, there are downsizers who actually opt to buy smaller but more expensive and luxurious property.
When downsizing, research, plan, and do away with non-essential possessions. In order to reach a good final decision, take your time as you evaluate every other aspect of your downsizing move.
Different people downsize for varied reasons. For some people, it is not necessary to downsize. But for most people downsizing will generally go hand-in-hand with your retirement plans.
Many people will choose to downsize because of change in their lifestyle. Sometimes, the house might be too big and a bit expensive to maintain after the kids have left home. You might prefer a change of scenery or to have a simpler life.
Obviously, there are financial reasons why people downsize. Some people opt to downsize so that they can get some retirement cash. That money can be used to buy cheaper and smaller possessions elsewhere.
Health reasons also make people downsize. Some want to live closer to family or go where living support, such as retirement village, is available.
It’s important to note that spending many years in a home and then downsizing can be traumatic. Allow yourself some time to adjust to your new home.
What to do when downsizing
- You will need to first assess your needs, wants and desires. Establish what you truly need in the new place. Contact Viviann Stuart for free consultation!
- Don’t rush.
- De-clutter and sort all your possessions.
- List all the items you can’t live without.
- Decide the kind of property that will serve you.
- Carefully identify and plan for all the items that you are going to buy for your new home.
- You need plenty of storage space. You can rent a storage unit since it is hard to part with everything at once.
- Check whether you can afford to buy first then sell or if it would be easier to sell then buy.
- Do your research and get professional assistance on selling and buying your property.
- If you are not sure about your new location, try it by renting it first.
- Make sure your new location is near essential services and within reach of your friends and family.
- Ask for financial help so as to increase your nest egg and reduce transaction cost and taxes.
What not to do when downsizing
- A long and happy retirement means you must have enough cash. Don’t blow away your cash after you liquidate.
- Don’t buy a home based on your existing furniture. Buy new furniture around your new home. Viviann Stuart can help you downsize as well as furnish your home. We are home styling experts in Sydney.
- Never buy a property if you feel uncertain, rushed, or pushed.
- Always ask for help from professionals, friends or family when you feel stuck.
Are you thinking about downsizing? Contact Viviann Stuart so we can help you make the right choice for your situation!