How To Effectively Downsize And Make Sense Of Your Net Worth?
How To Effectively Downsize And Make Sense Of Your Net Worth?
As we grow older, downsizing becomes a big decision. Large homes often become too big and overwhelming to upkeep, not to mention expensive and cold. Although often your best choice, downsizing can be a complex and daunting process. It often involves a number of specialists who use words that go over your head. To make your process easier, we’ve created a short guide on how you can effectively downsize and make sense of your net worth.
Why Downsize?
There are several advantages to downsizing your home. Firstly, you could make a significant profit. House prices have increased in value by 401% since 1990, which means your home has likely increased in value.
By selling your larger home and buying a smaller property you’ll have cash left over. This can be used for family, savings, or anything else you wish.
Another benefit of downsizing is you’ll have less upkeep. A smaller home usually means lower bills, which means you’ll be paying less to run your home.
Lastly, if you’re downsizing later in life you can choose a property that suits your needs. For example, if you struggle with mobility, you may choose a bungalow or a property with a smaller garden. You can tailor the property to suit your needs.
Things To Consider When Downsizing
At MarbleAir, we work with a number of clients who plan to move into smaller properties. Through experience, we know how difficult this decision can be. From choosing the property you want to financing your plan, it can be a little hectic. To help you make your decision, here are 8 things to consider when downsizing.
1. Plan Your Finances
Downsizing can be expensive and so it’s important to consider the financial implications of your decision. Before you take action, analyse how much money you’d like to dedicate to your new home and how you’ll finance it. Are you planning to sell your current home and use cash to buy your next one? Do you have savings to buy and develop another property? Will you take out a mortgage? The more thorough your plan, the smoother your move should go.
2. Choose Your Location
Location is an important part of any home. Are you relocating to the countryside? Or are you choosing to be closer to the town centre? Do you want public transport or will you drive? Do you want to live close to relatives? Each of these is important to consider. After all, you don’t want to move only to realise the location isn’t for you.
3. How Much Work Do You Want To Do?
When downsizing, consider how much work needs to be done on the new property. In general, immediate solutions are better as they will already suit your needs. However, if you struggle with finding that perfect layout and have a budget for the alterations, you can choose a property and tailor it to your needs.
4. Choose Your Layout
If you choose to make changes to your new home, layout is key. Here, you need to consider a number of aspects including: Is each room easily accessible? Will you need to make alterations in the future? You want to create a layout that suits you now and won’t need too many changes in the future.
Click here to Find out How To Make Your Current Home Layout More Accessible !
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or How Much Will it Cost Me to Improve my house ? Here are 3 Steps to a successful building project
5. Consider Day-To-Day And Future Costs
When looking at a property, you want to consider how the design will impact future costs. Consider running costs:
- Is the room insulated?
- Are your rooms well ventilated?
- Are the radiators efficient and cost-effective?
- Would you prefer an underfloor heating?
- Will your bills rise significantly in the winter?
- Would you consider renewable energy solution to heat your home?
If you spot any potential issues it might be a good idea to sort those before they cause any problems. Especially if you anticipate having some building works completed before moving in.
6. Consider The Local Community
Community is an important part of where you live. Will you be surrounded by like-minded people? Are there activities and places you can go to meet others? Will you be able to get help if you need it? Make sure you check out the community surrounding your new home before buying it.
7. Do You Want A Smart Home?
Modern homes are changing at drastic rates. Underfloor heating. Voice activated lighting. Air conditioning. There’s so much to choose from. When picking your new home you need to ask whether or not you want a convenient home (and one full of gadgets) or if you want to keep it simple and go back to basics.
8. Will You Be Comfortable?
Your home needs to be a place where you feel comfortable. A place where you can sit down and relax no matter what happens during the day. This is arguably the most important factor to consider when downsizing. Does your new home suit your needs? Will you feel comfortable?
Downsizing is a big decision to make. But it can be exciting too. With the right planning, downsizing can be the start of a new chapter. It’s important not to rush the process and make sure you’ve considered all factors before choosing to move. This way, you can turn your new, smaller home into a dream home for you and your family.
