Pros and cons of downsizing your home
Category Property Advice
The South African property market has seen an increase in the downsizing trend over the past few years. Downsizing one's property simply means moving into a smaller home than the one you currently have.
People downsize for various reasons. Many homeowners see downsizing as a means to fund their retirement or pay off debts. By selling a much bigger home for a smaller one it can help improve your financial status. It can even aid in reducing your day to day living costs.
Another reason for downsizing being popular is the empty nest syndrome. Older homeowners often feel that their houses are now just too big as a result of children moving out on their own. Considering the political uncertainty of the country, many homeowners are downsizing to fund a second property abroad. Some just want to be closer to friends or family members or are eager to start a new phase in life.
Downsizing your home provides a more simple life, however, there can be a few pitfalls. Here are some of the pros and cons of downsizing:
Pros of downsizing your home
- Securing your financial freedom
Downsizing to a cheaper house or apartment will allow you to pay off your existing debts and help you secure financial freedom. You can also make money by selling the contents of your home that you will no longer be needing.
Since you now have extra cash, you accomplish personal goals such as going on a much deserved holiday. Another option would be to invest your money for the future or fund your retirement phase.
- Encourages you to declutter
Moving into a smaller home means that you will have lesser space to keep stuff that you have been hoarding. Aside from selling your unwanted items, you can donate them to charities or give them to family members who have a need for it. Your new home will look much cleaner and attractive without the clutter.
Latest design trends place a high emphasis on minimalist design and spaces so you do not have to feel bad to give away that bulky furniture that you have since the 90s. Remember, old photos and books can also be digitalised and stored forever.
- Allows you to live in a more desirable neighbourhood
Instead of not being able to buy a large home in the neighbourhood you have always wanted to live in, downsizing will give you the opportunity to possibly now live in the area. Crime and pollution are more common in suburbs that are close to city centres. Outer suburbs tend to be less populated with many homeowners ensuring the safeguard and conservation of the neighbourhood. A move into a smaller home in the area you longed to live in can bring you peace, tranquillity, and let you become one with nature.
Cons of downsizing your home
- The cost of moving
If you do not make a profit from selling your home then you will go into extra expenses to cough up for moving costs, such as hiring movers. There is also the process of putting your home on the market, legal fees, and other costs.
- Less storage space
While you may now have a few places to clean and maintain, you also have lesser space. If you moved from a four-bedroom house with a lounge, dining room, entertainment room and so forth, to a two-bedroom apartment you will not be able to keep most of your belongings. It will also be difficult to decide on what to keep if you have attachments to most items. The thought of selling your priceless items because you do not have room for them will certainly be a downfall.
- Feelings of loss of prestige
Some people experience feelings of loss of prestige due to moving to a smaller home. Downsizing might not be the preferred choice for many, however financial woes leave them no options. More than often, the size and location of your home convey a certain status in society. Downsizing to a smaller home can make you feel less successful, even if you are doing it for all the right reasons.
Whether you are considering downsizing for a simpler life, retirement, or you want to move closer to family and friends, contact Seeff Hillcrest & Kloof today to help you take that leap.
Author: Seeff Hillcrest & Kloof
