9 ways to get started downsizing

Downsizing is often seen as the ultimate way to resolve money concerns, reduce
responsibilities and begin a new chapter in your life.

It’s a good strategy for anyone facing a financial hardship that needs a short-term fix,
but most people downsize as they enter their later years to make life easier for
themselves. The family home feels too big and empty now the children have left, and
it’s time for a change.

For those aged in their 50s and 60s, downsizing was one of the most popular
reasons for moving home. 

As experienced local agents, we work with many couples who are ready to cash out.
They want to buy a smaller apartment or townhouse and use the residual money to
enjoy the rest of their life.

Below are nine-points to help get you started.  

Do your sums
Use an accountant or independent financial adviser to help you calculate what you
need to maintain or enhance your lifestyle and help manage your money after you’ve
sold. It’s dangerous to assume that selling your current home will fix everything. Do
make sure you check the references and credentials of your adviser first.  

Move quickly
Avoid being caught by a rising market. Do not sell and then wait for the right property
to come along. If prices are moving north, a smaller property may become
prohibitively expensive. That would be a disaster.

Your crystal ball
Spend time considering how you intend to live the autumn years of your life. For
example, if you want to remain active and be surrounded by a solid social network,
then community-living might be the answer.

See the world
Travel is usually high on the agenda of couples seeking to downsize. When you’re
looking at property, bear in mind how much travel you intend to do. If you’re going to
be away for long stretches, prioritise good security and low maintenance.  

Community of friends
Consider the social impact if you move away from your neighborhood. Sometimes,
couples downsize to be closer to their children and grandchildren. If that’s not you,
then investigate community villages with organised social events for residents to
ensure you don’t become isolated. Social interaction is important as you get older.

Hidden costs
If you’re going to live in an apartment, you need to factor strata fees into your
budget. These levies can be a shock to your bottom line if you forget about them and
if you’ve owned a house all your life, you can find they take some getting used to. On
the plus side, you never have to worry about hiring a tradesperson so try to see them
as enforced maintenance fees. 

No surprises

Talk to your family before selling. You might find your children have an emotional
attachment to the property. If you explain your reasons, they should be more
understanding of your decision.

Big throw-out 
Downsizing means you’ll have to confront the often-emotional task of reducing your
possessions. Always give your family the first opportunity to claim anything of
sentimental or practical value to them, but set deadlines or you may find they never
get around to picking things up. 

Still nervous?
Talk to others who have downsized and learn from their experiences. You don’t want
to constantly look back over your shoulder and wonder if you did the right thing.
Most downsizers have inspirational stories and great advice that will get you excited
about what’s ahead. 

We hope you found this guide helpful. If you would like help understanding what your
home is worth in the current market, do not hesitate to get in contact. It can be a
great first step and help you start planning for what comes next.