Downsize Home: When is it Time?
Category Selling Advice
Whether it's due to a change in financial or family circumstances, our housing needs change. Sometimes that means moving into a bigger place but if you find yourself wondering how to know when you're ready to downsize home, you're in the right place.
Maintaining a Larger Home is Too Much Work
If keeping the pool in good nick, cleaning all the double story windows, and vacuuming all of the bedrooms is getting to be a schlep, it might be time to consider downsizing. Many of us dream about the big house, but sometimes the reality of living there prevents us from enjoying it fully. There's also a real financial risk involved. If we fall behind on maintenance we run the risk of losing market value on the home. Ask yourself seriously, is the juice worth the squeeze?
You Want to Lower Monthly Costs
Home loan repayments, utilities, maintenance, security, plus rates & taxes... The costs quickly add up and if you find yourself able to pay the bills, but unable to prepare for retirement, go on holiday and enjoy life, you might be ready to downsize. Consider your monthly income and how much money you'd need to free up to be able to live comfortably and without worry that your retirement is taken care of. Then consider how much money moving to a smaller home would save. It's that simple.
I'm About to Retire, Does a Downsize Home Make Sense?
In most instances, the answer is yes. If you're about to retire, chances are your income is about to decrease. Only you know the precise values of your retirement finances, but if upon retiring your total housing costs exceed 30% of your gross income, downsizing can be a real solution to curb expenses. Leasing out your larger, family home that you no longer need can also be a fantastic way to generate passive income for your retirement. Areas like Claremont, Newlands, and Rondebosch can fetch exceptional returns! We recommend using experienced leasing professionals to get quality tenants and maintain permanent occupancy.
Author: Paul Wasson
