Why it's important to downscale as a homeowner
Category Seller Advice
There are so many benefits to downscaling your property if you are a homeowner. Planning your property journey into old age is vital and can be rewarding if you approach it with the right mindset.
Many people who own large homes think that the house in which they raised their children is the perfect property to reside in in their golden years. But too few of these homeowners understand the overwhelming benefits of downscaling in time and so many realise it all too late.
But what does it mean to downscale? For homeowners, it means selling your large property for a smaller one that offers more convenience, safety and support. Downscaling doesn't have to mean downgrading. If you're nearing retirement age, your next home could even be a property of higher value, depending on your financial situation.
Ageing homeowners might also have more options than they think when it comes to downscaling. Understanding the benefits of doing so is the first step toward planning for the future.
Five reasons why it's important to downscale as a homeowner
1. You need more comfort - and less space
Many affluent homeowners continue living in their four- or five-bedroom properties even after their children left home. They might hold on to their homes because they:
- want to have enough space for their children and grandchildren to visit
- believe their property is their biggest asset and will allow them to afford a retirement unit one day
- have many beautiful memories connected to their house
But the first downside to holding onto your family home after your children have flown the nest is that the house most likely no longer suits your lifestyle.
You might want to travel or become more social, but you're tied to a large property that needs constant upkeep. These types of homes also typically don't have the latest and most convenient amenities, which you could get in a smaller new or recently remodelled home.
While you hold on to your large property for those once- or twice-a-year occasions where the whole family visits at the same time, you could be living more conveniently in a more comfortable abode.
2. It's hard to maintain a large home
Large properties require large amounts of maintenance. Sprucing up the garden and playing handyman is easy - and even fun - when you have the energy and motivation to do so. But as you age, you might not have the same energy, drive or income to maintain a family-sized home with a big garden.
As your property matures, it will need more and more work, and eventually, a revamp of some parts too. This can be costly. If you're not using all the rooms and living areas in your home, it might also feel pointless to keep things in ship shape all the time.
Homeowners in this position could benefit greatly from selling their property to buyers who are keen to take an ageing house and make it their own. Moving to a smaller home would allow you to spend more time on the things you truly enjoy.
3. Property investments require constant upkeep
The reality is that homeowners who fall behind on maintaining their house put their investment at risk. This is especially risky for senior property owners who plan to use the profits from the sale of their house to buy a retirement unit.
If you hold on to your large home for so long that you no longer have the ability to maintain it properly, it will fall into disrepair, which will reduce its value. If you sell it, you might find that the proceeds of the sale don't cover the cost of a retirement unit, which is typically more expensive than other properties.
Selling your property while it is still in good condition will allow you to invest your money into a home that is easier to maintain and more likely to retain its value.
4.You need to build connections with like-minded people
The thought of living in a retirement village or community might not seem appealing to every homeowner, but don't underestimate the value of building relationships with people of your age.
Gone are the days when retirement communities were only for the frail. New retirement villages are geared toward young retirees who want a life in a safer space where they are surrounded by people who share their interests and lifestyle.
Homeowners who live in their large homes for years after their children flew the nest sometimes become isolated from their community and support network. Selling your property and moving to a place where other retirees live will allow you to build long-lasting relationships and socialise with like-minded individuals.
5.Adjusting to old age is easier when you're prepared
The sad truth is that not every couple lives to a very old age together, and one partner frequently passes away several years before the other. Too often, the loss of a loved one is made even more painful because the remaining partner has to move out of the home they've shared with their spouse for decades.
The ideal is to move to a retirement community together, allowing you to build the relationships and support structures you need as your life changes over time. Partners who move to smaller properties together can provide one another with the necessary support during this transitional phase.
When and where to start?
Planning where you'll live as you age doesn't have to be an overwhelming or morbid experience. If you map out your property journey in phases, you might find that there are several positive experiences to look forward to.
Empty-nester
Start planning your next step the moment your children reach the age where they might want to leave home. Consider for how long you'll be making frequent use of all the additional bedrooms in your house at the same time. If it's only going to be once or twice a year, it's time to prep for a move.
You'll want to look for a smaller, more convenient and more easily manageable property, but not necessarily one of lower value. If you can afford it, now is the ideal time to invest in a home of the same value or higher, so you get more out of your investment when you eventually sell and buy a retirement property.
Retiree-to-be
Whether you're already living in a more practical property or still residing in the house in which you've raised your kids, it's time to consider the benefits of a retirement village.
Remember, not all retirement estates are for people of old age. Several of these communities are targeted at those who retire at 50+, offering all the convenience of estate living while allowing you to enjoy the same lifestyle you've had all along.
Buying into one of these villages as early as possible has its benefits, if it's within your budget. Properties in these complexes are typically more expensive so you want to snatch up a yard or unit as soon as possible before prices increase.
Once retirement kicks in, you'll have the freedom to relax and socialise without the responsibility of a large property to maintain.
Golden oldie
If you're already retired and living in a four- or five-bedroom house, then this is your wake-up call to consider the host of benefits of downscaling.
It can be stressful to let go of the home you've lived in your whole life. But the experience of moving house now will be so much better than when you're older and no longer have the same energy or support that you have at this very moment.
At this point, it is vital that you work with experienced estate agents who know how to guide you as you sell your home and settle in a unit that suits your needs and preferences.
The estate agents at NS Property Solutions are uniquely positioned to help you with this transition. We've assisted hundreds of seniors to sell their properties with minimal effort and take the next step in their journey as homeowners.
Reach out to us for advice or a valuation of your home today.
Need guidance on how to choose the best estate agent for your sale? Read our article on What to look for in an estate agent.
You can also explore our properties for sale here.
Author: NS Property Solutions