Consider These Things Before You Downsize

Moving from a larger property to a smaller one, otherwise known as downsizing is a big step, so you need to carefully consider the factors below before making your decision. 

Is downsizing the only option?

Many people see downsizing as an effective way of making the money they put into their property more available. This money can then be used for a variety of things such as improving quality of life, major purchases like vehicles, or travel. However, before you trade in your five-bedroom house in the suburbs for an apartment, it’s prudent to consider whether downsizing is the only option. 

For example, could you sell some of the land that comes with the home you own, to developers and access the funds you need that way? Similarly, have you got a room or another building on your property that you could lease to raise funds? You may even want to keep your property and lease the entire thing out. Then you can access some additional revenue but also give yourself time to make your decision and allow yourself to go back if that is what you want. 

How much could you save by downsizing?

Another key consideration is how much you can truly save and access by downsizing. To establish this you will need to compare your costs now to the costs you would have if you took on a smaller property. Remember to be very accurate with this and don’t just estimate your predicated costs, but spend the time narrowing them down because the last thing you want is to make your downsizing move and then figure out that its not giving you access to much money at all. 

How will you get ready for the reduction in space and storage?

One of the critical aspects of downsizing that people worry about is whether they will be able to cope with the reduction in space and storage and how they will prepare for it. 

The key thing to remember here is that you won’t necessarily be able to transfer every aspect of your old life into your new property. What this means is you may have to get rid of some significant items like larger pieces of furniture that just won’t fit into your new life. 

One way you can soften the blow of this often difficult aspect of downsizing is by finding some local storage units where you can rent some space. This will allow you to store items of furniture that you aren’t quite sure you can live without if you downsize. Then you can get a real sense of what living without them truly feels like and make a much more informed decision. 

Is the trade-off of downsizing worth it for you? 

Last of all, it’s very important that you carefully consider whether the trade-off between the reduction in space and the increase in finances is worth it. For some people, it absolutely will be because their family are grown and they no longer need such a large house. However, for those will a more pressing requirement for space, it simply may not be worth the swap.