When is the right time to downsize?
For many people downsizing isn’t necessarily a choice, more a viable financial decision. It can be a tough decision, especially if you have worked hard for your house, and it has been a family home for many years with lots of happy memories.
However, sometimes it is the right time to move on and downsize your home. If you are considering your next move, here are some reasons why you might want to think about downsizing.
- Your health is declining – whether it is a decline in health or a realisation you are getting older and less able, if you live in a house with a lot of stairs and levels, it's important to consider the future and how your home fits into that.
- Are you house poor? Whether it is mortgage payments or maintenance costs, if you have very little disposable income left, then perhaps you should look at it from a quality of life point of view. Lowering your monthly mortgage payments could give you that holiday or change of scenery you have always longed for.
- Have you lived in the house all your adult life? If so, it is likely that you will make a profit when selling the property. If your financial situation has changed, and you are looking towards retirement then this could be a way to free up some cash.
- Have your kids now flown the nest? If you are rattling about in a big house and you no longer need all the space, then don’t listen to your kids if they give you grief about selling their childhood home – it is your decision!
- Move to a better served location – if you are living in a beautiful remote or rural location, which relies on you driving to local amenities, you might want to consider moving to somewhere closer to family members or an area with good transport links and amenities. This reduces your risk of isolation as you become older.
If you are considering downsizing, remember to take into account moving costs, estate agency and conveyancing fees, as well as LBTT costs before making your decision.
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