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.

 

 

Read more related to this topic

Wilfrid KOON KAM KING
What you need to know about cancelling your bond

When the time comes to cancel your Bond, either because you have paid up your loan or you are planning on selling…

Tell me more

Cyril WONG SUN THIONG
How to sell your home and buy again

There will come a time in your life when you may need to move depending on your needs and circumstances. You may …

Tell me more

Cyril WONG SUN THIONG
Understanding all your home buying costs

At Absa we aim to make buying your home as easy as possible. It’s a big purchase and too many buyers think ….

Tell me more

Need more help or advice?

Let one of our property experts call you back.

Call me back

Call us on:

0860 111 007

E-mail us at:

General account enquiries: home@absa.co.za

Home loan applications: propertyhub@absa.co.za

Battling to make home loan repayments: bondrs@absa.co.za

Homeowners comprehensive insurance: adminhoc@absa.co.za

Life insurance: polserv@absa.co.za

Visit your nearest branch