If you have an empty nest, a property too large to maintain, or a home that no longer fits your lifestyle, it may be time to consider downsizing.
While you might have less room for guests, there can be many upsides to selling your home and purchasing a smaller property.
Here are some of the benefits downsizing can bring.
If you’ve owned your current home for a while, it’s likely to have increased in value. Using this accrued equity to help purchase a less expensive home can put you in a more comfortable financial position.
If you’ve already paid off your mortgage, downsizing can free up extra cash. Or by reducing the size of your home loan, you can save on future interest payments.
While there are costs involved with downsizing such as moving expenses and stamp duty, you could also make long-term savings.
A home with less space usually means less heating, gas, cooling, and general maintenance costs – and you might like to contribute these extra funds toward retirement.
If you’re downsizing later in life, it can be an opportunity to choose a property better suited to your changing needs and lifestyle.
Instead of contending with stairs or a maintaining a backyard, you might prefer a property you can “lock up and leave” such as a townhome with a private courtyard.
Smaller properties are often more affordable, so you may be able to consider a location you could not afford before when searching for a larger home.
Depending on your chosen area, you may even make a profit on the sale – giving you more options when it comes to buying.
When considering changing your home or mortgage, getting the right advice is a smart first step.
Speak to a Liberty Adviser for help to downsize your way to a home that works for you.
When purchasing property, a mortgage broker can help you get the right loan for your circumstances.
Looking to add value to your home? Here are some easy upgrades that can help.