Is it time to downsize?

Property ownership in today's economy is no small feat. But even when you've worked most of your adult life towards buying the family home of your dreams, the possibility of downsizing should never be discounted. Whether you're looking at lowering the costs of homeownership, or reassessing your property needs once your children have moved out, there are a number of clear indications that it's time for you to move on to something smaller.

The financial costs of homeownership are no laughing matter, and they are in no way constant. Owing to a constantly fluctuating economy and the condition of a property that changes over time, the costs of owning a property and keeping it in tip-top condition will not stay the same over time. So even if you could afford your home when you bought it, it doesn't necessarily mean that its costs will always fit into your budget, especially with older properties that require more maintenance.

Another topic that should be broached when finances are discussed, is the possible benefits of resale. With a bit of TLC and home improvement, a property's value can easily increase substantially. In the face of financial uncertainty, especially when the property's value has increased, a resale will allow you to benefit greatly.

Whether it's due to a thorough spring cleaning, the adoption of a more minimal approach to living, or the children moving out of the house, homeowners often face the fact that they aren't using as much of their home as they used to. Our needs and priorities change over time, and along with them, it makes sense that our property should too.

When downsizing due to unused space, homeowners have the option to either move to a smaller property or to restructure their current home into something smaller, remodelling the unused space into something useful, like an office or a rental apartment. These options, as mentioned, will also be dependent on how your needs and priorities in life have changed.

Even though we've come through a period where social distancing has become our default setting, certain careers continue to demand strenuous travel and time away from home. When a homeowner's career demands that they spend the majority of their time away from their home, it may a good idea to think about using the money you spend on a large home on something more simplistic for the times you actually spend there, investing the additional funds in other avenues.

While we all want to stay at the peak of our health for the rest of our lives, you have to be realistic about growing older and the limitations of your living conditions. Multiple flights of stairs and steep driveways, for example, are not items you'll want to face every day for the rest of your life. Planning ahead and downsizing before your current home stands in the way of your enjoyment of life is always a good idea.

Downsizing is often an unavoidable part of homeownership, but it's a change that most often helps homeowners find a new happiness that suits their lives better. When downsizing, however, it is important to assess your needs carefully as you search for your new home. To do this, it is best to get support and guidance from a trusted property specialist to help you make the best decision for the next chapter of your life.

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This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your adviser for specific and detailed advice. Errors and omissions excepted (E&OE)