Will Downsizing Your Home Save You Money?
Moving house isn’t an everyday affair. In the UK the average person moves every 23 years!! A smaller, more manageable property could mean less maintenance, potentially lower bills, and maybe even a cosier environment. But will downsizing your home save you money? Let’s take a look.
Affordability of current property
While a smaller home can come with a smaller price tag, the current availability of the type of property and its location will also influence the price you pay. If the demand for smaller properties is greater than their availability, then this can cause their price to rise.
Also, while the upfront price of a smaller property might be lower, moving home is not inexpensive. Moving fees include stamp duty, conveyancing fees, and the actual costs of moving day all need to be factored into your overall budget.
Location, Location, Location
The age-old adage still rings true. If you’re thinking of moving from a large home in a more affordable area to a smaller home in a prime location, the savings might not be as significant as you’d hoped. Some areas, especially sought-after ones with excellent amenities, transport links, or scenic beauty, can command higher prices, regardless of property size.
Downsizing your home and personal considerations
Beyond the financial implications, downsizing is a personal journey. You might want a simpler lifestyle, relocate closer to family, or start a new chapter in a different environment. Financial savings can be an incentive. But often it’s the emotional and lifestyle benefits of downsizing your home that sometimes outweigh the monetary ones.
Pros and cons of downsizing your home
Downsizing can understandably feel daunting, especially when you’re contemplating moving out of a cherished family home. Leaving memories, emotions, and a lot of years spent in one place are all enough to make anyone put off the idea of downsizing. To help you make an informed decision, we’ve listed the pros and cons of downsizing for you:
Pros of downsizing your home
- Reduced costs: One of the primary reasons for downsizing your home is to save money. Smaller homes typically have lower utility bills, reduced maintenance costs, and potentially smaller mortgage payments or rents.
- Less maintenance: With a smaller space comes fewer rooms to clean. A smaller or no garden to upkeep, and generally less to repair and maintain over time.
- Simpler lifestyle: Downsizing can be a good motivator to declutter and get rid of things we are prone to accumulate over time.
- Better location: Sometimes, moving to a smaller property might allow you to afford a home in a more desirable area, closer to amenities, family, or even nature.
- Environmental impact: Smaller homes typically have a smaller carbon footprint. So, if you’re environmentally conscious, downsizing can be a step in the right direction.
- Release equity: If you own a large property, selling up and buying a smaller one might free up some of the equity you’ve built over the years, giving you a financial boost.
Cons of downsizing your home
- Emotional toll: Leaving a family home filled with memories can be emotionally challenging and make it hard to leave.
- Space constraints: Naturally, a smaller home means less space. This can be an issue if you’re used to having extra rooms for guests, a large kitchen, or ample storage.
- Moving costs: The initial costs of selling, buying, and moving are not insignificant. Think professional fees, stamp duty, and removal services.
- Housing market fluctuations: If the housing market isn’t in your favour when you’re looking to downsize, you might not get as much value from selling your larger home as you’d hoped.
Next steps to will downsizing your home save you money
If you’re considering downsizing your home to save money, then ensure you engage a local estate agent that you like and believe you can work with and who has the necessary experience to support you through your sale.
A good estate agent is invaluable. They will offer guidance on market trends and their insight could lead to potential savings or at least ensure you get the best price for your most valued asset.
Last Updated: October 30th, 2024
