5 Factors to Consider Before Downsizing to a Smaller Home
Downsizing to a smaller home is a common trend and it’s not just about saving money anymore. It can be a more convenient and sustainable way of life. Smaller homes are easier to maintain and adapting to a more minimal lifestyle is actually a good way to reduce stress. Before deciding to move to a smaller home, you need to bear in mind the space you need along with prioritising the amenities you’re used to having. This will help you figure out if it’s the right choice for you. Here are five factors to consider before downsizing to a smaller home.
How much space you’ll realistically need
How much space you need depends on many things. If you have a family, creating a kid friendly home should be a priority. Consider how many bedrooms you need and common spaces to play, entertain guests and so on. You may also want to set up a home office. Plan how much storage space you’ll realistically need as well. Take measurements of your furniture and draft a potential floor plan as you view properties.
Your main priorities in a home
Learning how to prioritise when buying a home is essential. Make a list of what’s important to you and your family whether it’s outside space, proximity to schools, public transport, or other local amenities. These will help you narrow down your budget. Property prices vary according to location so you need to decide whether it’s worth downsizing to a smaller home in the city, or perhaps moving somewhere more rural to save money instead.
Proximity to neighbours
If you move to a smaller home you’ll likely have a closer proximity to your neighbours. This is something to think about as you’ll be sharing walls with strangers. You could find out a little about the neighbours from the previous landlord and see if they’re a good fit according to your lifestyle. This way you’ll hopefully avoid neighbour disputes in the future.
Your financial goals
It’s important to think about the reasons why you’re thinking about downsizing, and your financial goals for the future. Sit down and create a financial plan to figure out what you’re going to do with the money you save. Make a realistic budget for the lifestyle you want and choose a property accordingly. Figure out if downsizing will help you meet your financial goals.
Before deciding to downsize to a smaller home, consider all the alternatives. If you choose to stay in your current home you could look into different mortgage options such as equity release. You can use a Reverse Mortgage Calculator online to figure out how much you can borrow based on the value of your home. It’s important to weigh up the pros and cons of your decision. You need to make sure your financial savings make up for the fact you’ll have less space and reduced amenities depending on the area. Speak to a financial advisor and they’ll find the best solution for you.