2018 saw individuals moving to downscale for several reasons that would improve their lives in some way or another. Downscaling may reveal more benefits than you realise.
CEO of Greeff Christie’s International Real Estate Mike Greeff says, “Those looking to downscale would need to consider a host of factors before making the final decision and making the move. With any major decision, there are various factors to consider which could end up influencing your final choice.
Some of the benefits of choosing to downscale include:
Downscaling allows you to purchase a property that is more suited to your lifestyle
More often than not, people looking to downscale choose to do so in order to accommodate their living requirements and lifestyles. Your current living situation may exceed your needs and as such you could be spending a lot more than you need to.
One example of this may be your home recently being left empty with your children having moved out and living on their own, so you may require a smaller residence as you begin this new chapter in your life. The same can be said for many other situations as life stage is often a deciding factor for those looking to downscale.
Your expenses will be lower
By downscaling, you are more than likely going to choose a home that has a smaller, more manageable garden and possibly a smaller pool, if any. By doing so, your maintenance costs will be significantly lowered and that is just the start. If you choose to move a smaller property, your bond repayment costs will also be lower if you apply for a new bond.
If it is within your means (due to you having sold your larger home) you could also choose to purchase a property for a lower value and not have to pay monthly repayments at all.
Downscaling could allow you to move closer to work or family
The large family home may not be in close proximity to your place of work or close to family members you may want to see often. By downscaling, you could choose to be closer to places of work and certain amenities.
This could certainly work in your favour and lower your travelling costs greatly as you would no longer need to spend in the same way as you did before you had downscaled.
A greater return on investment
By having smaller, easily managed homes in your asset portfolio, you are giving yourself a greater chance at a higher guaranteed return on investment over a reduced period of time. Your financial standing will also be immediately boosted by the liquid capital you have at your disposal.
While the decision to downscale may seem daunting initially, there are immediate and long-term benefits linked to making the choice. Whether having more liquid capital available in the bank or taking the sadness away from being empty-nesters, downscaling could be the best decision that you make.