Who said bigger is better? (Well, maybe when it comes to a slice of cake.)
Downsizing is not just for empty nesters. More and more Australians are going smaller because the opportunities and benefits can be bigger.
Here are six huge incentives that you may want to consider:
If you haven’t paid off your current mortgage, a smaller property could reduce your monthly repayments – this frees up your cash flow enabling you to save more or pay off other debts (like a car loan or credit card).
Smaller properties can also be cheaper to cool, heat and maintain, so you could save on utility bills and maintenance costs. You may also have cheaper council fees. You can then put the money you save towards an annual holiday – a cruise, an overseas trip (post Covid-19 of course) or a road trip around Australia!
These savings will be offset somewhat if you move from a house to an apartment, but make sure you budget for body corporate fees. As with any move, also bear in mind that you will still need to pay stamp duty, legal fees and moving costs as a once off cost.
Downsizing helps the planet too. Smaller homes can be cheaper to run, so you’ll reduce your energy and/or gas consumption. If you also do some research before you buy, you can find properties by builders who are being pro-active with their design and energy efficiencies, incorporating recycled materials, solar-powered systems and rainwater tanks.
Downsizing could offer you the opportunity of moving to your dream location, whether it’s a coastal beach house or an inner-city apartment.
It’s also good to consider the walkability of a new location, as you’ll spend less money on car-related expenses and Ubers because you can walk to buy your groceries or to eat at your favourite cafe or restaurant instead.
Here’s a great website that gives your suburb a rating – based on its walkability, lifestyle and safety.
Put the Spray & Wipe and Dyson away. Life’s too short to spend endless hours cleaning and dusting – especially in redundant bedrooms and living spaces.
A smaller property means that there is less to clean and tidy, freeing you up your time to enjoy your new home and neighbourhood. And if your current home has a big backyard, you can also say goodbye to weekends of weeding, sweeping, mowing and pruning.
They say a change is as good as a holiday. Moving house also means new neighbours, which could mean new friends, new travel buddies or even someone new to share a glass of wine with.
Downsizing is the perfect opportunity to invest in some stylish new furniture you’d be proud to own.
But don’t just throw out your old stuff – host a garage sale or sell it on Gum Tree. Remember, ” One man’s trash is another man’s treasure.” The money you make from the sale can go towards new furniture or moving costs, and the stuff you don’t sell can be donated to charity (providing it’s in fairly good condition of course).
There are many benefits to downsizing your home. From cleaning less and saving more to living in a great new suburb, and you just might discover that sometimes smaller really is better.
If you would like to find out more, please feel free to call George on 0411 216 849 or, book in a time to chat with George.
PS This article is prepared based on general information. It does not take into account individual financial or property objectives or needs and is not financial product or investment advice.