The benefits of downsizing

The pound has dropped, borrowing rates have increased, and interest rates are expected to rise significantly having a huge impact on mortgages. However, for those who are considering downsizing, now may be the perfect time to do so.

Some of the key benefits of downsizing just now include:

• Financial benefits – now is a good time to sell and release capital in your home. With continued supply shortages and interest rates on the rise, it may be better to sell sooner rather than later. Releasing equity will give you a better cash flow, presenting you with the opportunity to spend money elsewhere, whether that is for other projects, spending it on family, or going on holidays, rather than having it tied up in property.
• Energy savings – a smaller home, with fewer rooms to heat, is a huge advantage for many people just now as we face an energy price crisis. Modern properties and new builds are also likely to be better insulated and more energy efficient than an older home.
• Less responsibility – there will be less ongoing maintenance issues and costs when downsizing to a smaller and more modern property, and even more so if you move to a flat or apartment without a garden. A smaller home will also reduce insurance costs.
• Declutter – moving to a smaller home gives you the opportunity to declutter and get rid of things you have stored away at the back of a cupboard or in the loft for years and never used. Now would be the perfect time to take stock of your possessions and review the furniture and belongings you have accumulated over the years.
• Lifestyle changes – moving somewhere new can give you a new lease of life. This may be the moment you have always waited for and move to the coast or a pretty market town. Moving to a retirement development with others of a similar age also gives you the chance to meet similar people and socialise with them should you wish. A smaller home with less costs and responsibility can also offer you more freedom to get away for weekend breaks and holidays.

We are living in uncertain times and making that decision to move from a house to a smaller property or retirement apartment can be daunting. However downsizing can be a financially astute move in today’s climate, giving you more time and money to spend on the things you love.