Thinking of selling your home and buying a smaller one?
Downsizing has many benefits, not just for empty nesters or retirees but also for those of us that want to lead a simpler life. Sometimes bigger does not always mean better!
Here’s what you need to consider:
- Less space
This means less time spent on household duties like cleaning, mowing the lawn etc. A smaller home might also force you to spend more time outdoors, which can have significant health benefits, both mentally and physically. Less space can also result in increased savings as you will tend to buy less clothes, food and consumer goods as a result of space restrictions. If you have a family, buying a smaller home and living in a smaller space can bring you closer together.
- Less things
You will have to go through everything you have you accumulated over the years and decide what to keep and what you are not bringing with you. Deciding on what to bring and how much to bring is a huge step towards downsizing successfully. Organization expert and founder of KonMari Media, Marie Kondo advises “gathering together all of one’s belongings, one category at a time and then keeping only those things that ‘spark joy’”.
- Lifestyle changes
A smaller home will mean smaller parties or having to entertain outside of the home instead. This also means spending less time shopping for and preparing food, cooking and cleaning and more time to spend on what’s important in life – your loved ones.
- Saving time
Less time doing household chores means significant time savings that can be put towards spending more quality time and building stronger bonds with your partner, family and friends. Less responsibility, smaller workload, more time on weekends and greater flexibility will also contribute towards a better quality of life.
- Fewer bills
Often downsizing involves taking on a smaller mortgage, if any. Hello financial freedom! Also, larger homes require more power to keep warm in winter or keep cool in summer. So with a smaller home, you can decrease your carbon footprint and save money on your energy bills. According to Expatistan’s Cost of Living Index, the average utility bill for two people in Sydney is $546 a month.
As you can see, downsizing definitely has many advantages and starting a new chapter in your life is always exciting. But before you take the plunge, you will have to think of how to start the process of downsizing. Do you sell first, then look for a property to buy? Where will you live during the interim period? Or can you sell and buy at the same time?
You can downsize by selling your current home and buy a new one at the same time using a Deposit Power Guarantee. A Deposit Guarantee is a certificate you can use instead of a cash deposit to secure your new property. At settlement, all you need to do is pay the full purchase price including the deposit.