Should you downsize your home?

Reader's Digest Editors

Here, we look at 9 popular reasons people choose to downsize their property:

1. Reduce day-to-day living costs

Downsizing enables many people to live mortgage free as well as reducing other living costs such as utility bills. These savings can then be put towards living during retirement, into a savings fund, or spent and enjoyed.

2. To fund retirement

People approaching retirement age often consider downsizing as a way of funding their retirement—or allowing them to take early retirement—through having an easily accessible lump sum of cash.

3. Funding children through university

The rising costs of putting a child through university means some parents now downsize their family home to be able to fund their children’s education.

4. Pay off debts

For people who have a large amount of debt which they can’t afford to pay, or which is affecting their life in some way, downsizing their house is a viable way of paying off the debt and regaining control.

5. Buy a second property

Buying a second property is a dream for many—either to use yourself or to provide an income. Downsizing to release funds is a popular way of funding this dream.

6. Less environmental impact

A large home that's underused has a great impact on the environment. There are a growing number of people who are downsizing their property because of this. A smaller property reduces carbon footprint and minimises energy use.

7. A simpler life

Downsizing can provide a more simple life with less clutter/personal belongings and more spare time. It also means less time spent cleaning and maintaining the property or garden.

8. Relationship breakdown

Sometimes the reasons for downsizing are forced. When the break-up of a relationship takes place it often means the shared home is sold and both of the partners need to find smaller properties they can afford to pay for on their own.

9. Having too much capital tied up in one house

Having all your money tied up in one property can worry some people in case they need to access a larger amount of money quickly. This can be as a result of a sudden illness, a house maintenance issue or a job redundancy. Some people downsize and place the released money into a savings account ready for a ‘rainy day’ or invest it elsewhere.

Should I downsize my house?

Before taking the plunge and downsizing it’s important you work out what the cost of doing so will be to you. Moving house involves many costs - such as legal fees, stamp duty and estate agent fees. All of these costs can eat into the money you will have at the end of the sale.

You should also consider the reasons you are making a move and talk to your family or friends about your decision.

If you do decide that downsizing is for you Reader’s Digest Property provides a hassle-free way to sell your property quickly. You can receive a guaranteed cash offer for your property and a sale completion time to suit you. Fill out the form below or call us on 0800 433 7979 to find out how much you could receive.