Do you find yourself in the position where your children have grown up and have moved out? If so, have you thought about downsizing? There can be some distinct financial advantages to living in a smaller property, which may enable you to use the money for better causes in your retirement.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it
Benefits of downsizing your home
It is not an easy decision to move out of a home where many fond memories have been made. But, if you are finding yourself struggling to maintain the property or feel you have more space than you need. Now may be the time to consider moving into a smaller property.
The benefits to moving into a smaller property, include:
- less time spent cleaning
- lower heating bills
- opportunity to make a fresh start
- selling your property could release some equity which will give you a financial boost
- and, if there is enough equity in your property, you could possibly live mortgage free in your new property
Get ready to move
Making the decision to move out of a family home, brings mixed emotions. You may feel excited for the next stage in your life and sadness that this chapter has come to an end. It is important that you prepare yourself for the move and try to make it as stress free as possible.
This includes how you plan to sell your home. There are numerous platforms that enable you to handle the whole process yourself. Or, you can choose to go down the traditional route and appoint an estate agent to handle this for you. When choosing an estate agent, you should compare commission rates, how well they know the local housing market and how they conduct the viewings.
You may also need to think about getting the house ready for sale. This could include giving the outside of your home a fresh layer of paint, and tidying up the driveway or garden. It is the first thing viewers will see and you need to make a good first impression. You should also consider depersonalising your home, by putting away personal photos and collectables. The viewer needs to be able to visualise themselves living there.
You can also find some further suggestions can be found in our article ‘Tips to sell your home this summer.’
What next?
There is only really point in moving out from your family home if you are going to put the money to good use. This could involve:
- Invest the profit for a rainy day, incase you need to rely on it again later in life
- Invest the profit for the financial future of your children, for example, to support them through university, or to buy their own first home
- Plan a happy retirement
- Use the equity in your property to provide a regular income through your retirement, possibly by buying a buy-to-let property or another income-generating investment
A financial adviser can discuss all your options and align this with your personal and family goals.