3 reasons to consider downsizing
As we get older, everyone faces certain decisions in their life. For homeowners, there are few choices to make more significant than relocating, particularly if you have been settled in your home for a long time. With advancing age, however, there are actually a lot of reasons why moving house is a good option, which is why downsizing now can make things that much easier as you continue your path through life.
Even if the idea of downsizing feels like something far into the future, keeping one eye on the real estate market for ideal smaller homes just makes sense. Whatever your reasons for considering moving to a smaller home, it's never too early to make contact with a buyer's agent about your options.
There are potentially massive gains to be had for anyone who has owned their home over a long period.
One of the most common reasons for people to consider downsizing comes down to a surplus of space. In many cases, older Australians find themselves with excess rooms and storage once they have raised a family who have since moved on to their own homes. If you find yourself with more space than you need and could do without the extra maintenance that comes with a large family home, it could be that downsizing is right for you.
The Australian Bureau of Statistics has forecast that by 2031, around 3.5 million people across the nation will be couples living without children – mostly "empty nesters". While the temptation to hold onto the family home – just for those times when your family comes home to visit – can be strong, ridding yourself of a large home can mean less work for you in your later years.
Access equity and modern value
Along with all the lifestyle benefits that can come with downsizing, there are important financial benefits to be considered also. If you have been living in your current home for 20 years, a significant increase in the median home price will have occurred in that time. In Sydney for example, a Macquarie University study found the average sale price in 1995 was just $196,750. Compare that to this year, where the median crossed the $1 million threshold for the first time, according to Domain's June House Price Report.
Just ask a Sydney buyer's agent – there are potentially massive gains to be had for anyone who has owned their home over a long period. Turning some of your space into extra savings, whether for your retirement or other reasons, is definitely a possibility with property prices as strong as they are right now.
Downsizing now can make things that much easier as you continue your path through life.
A clean slate
For most people, the idea of relocating can be nerve-wracking purely for the amount of effort involved in the actual move. Every year you spend in one house is another year for accumulating things, and most of us are surrounded by stuff we don't need. You might think you can't downsize to a smaller home because your current large house is full – but perhaps that just means you need an excuse to cull some of your unnecessary clutter.
Downsizing could be just the excuse you've been looking for to finally dig through your acres of possessions and get rid of some things you don't need. You might be surprised just how much you've collected over the years, and how much of it you can easily afford to lose.
The reasons to move to a smaller home, particularly for older Australians, can be very compelling, and the above are just a small example. Talking to a buyer's agent about exactly what kind of new, smaller home you're looking for can set you on your way towards a more manageable and enjoyable life.