Do you really need all the space in your current home? You might be comfortable in your present home, but have you considered downsizing? Selling your home and buying a smaller (or more cost effective) home has both advantages and disadvantages. So, let’s look at what downsizing really means.
The advantages of downsizing
Lower repayments:
- Buying a less expensive home means you could save on home loan repayments. If your home loan costs less you will have more money available.
Less utility costs:
- Rates and taxes on a smaller home could be less. Plus, a smaller home might use less electricity and water. This means lower monthly bills.
Easier maintenance:
- A smaller home is often easier to maintain. Less space, less rooms and less to go wrong.
- A smaller garden for example, is much easier to maintain than a larger one.
The disadvantages of downsizing
Moving is stressful:
- Moving house is listed as one of the most stressful things we can do. This might be true but these moves usually don’t occur too often during your lifetime.
Pride:
- It may sound strange but, for some people, downsizing means a loss of pride. Attitude counts here.
- If you are downsizing for financial or practical reasons, this will be a smart decision.
Space:
You may not have enough space for all the furniture from your larger home and may be forced to sell some of your items or give them away.
Cost of moving:
- The move will cost you extra.
- There are transfer and bond registration costs to pay on a new property.
So what’s best for you?
Downsizing saves you money, and gives you less to worry about - ideal if you're in financial difficulty or not. Your needs could change, home costs could become burdensome, your income could change, or it could just be rising prices and a higher cost of living. In all these cases downsizing can be both sensible and practical.
Downsizing isn’t hard to do
The disadvantages of downsizing are often emotional and not permanent. You must consider the cost of moving though. Moving is not pleasant but it is not something you do often. Downsizing might not feel pleasant but like most things in life, it will get better with time – provided you plan carefully.
Downsizing is often a good idea
Downsizing is an excellent way to maintain your standard of living despite increasing costs or, a great way to stabilise your lifestyle should you face financial difficulties. Your financial security, like your health, is one of the most important things and anything you do to make yourself more secure will always be a good choice.
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