Exploring the Positives of Downsizing for Retirement

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When you are young, you may enjoy owning a large home big enough to entertain friends and family while giving you space for your many different hobbies and lifestyle interests. But as life goes on, it is normal to begin to understand that having a large home with many rooms and a lot of space becomes a burden, especially as children grow up and begin moving out. This leads to large empty spaces with nothing in them, or rooms that just become storage spaces that you rarely if ever venture into. You may begin to realise that your home will need to change to continue to suit your family's needs and requirements. In this manner, you may decide to move towards downsizing before retirement. Let’s go through some positives and benefits of downsizing your home at or before the time of retirement while living on the Sunshine Coast.

5 benefits of downsizing your home for retirement

  • Increased cashflow

Downsizing your home could provide a much more positive cashflow by reducing your mortgage debt thereby allowing you to pay off the debt quicker, invest in other areas or just give you more disposable income to spend on other things. 

  • Lower insurance and utility costs

The fact that you are insuring a smaller space and structure will incur much smaller insurance costs, as well as lowering potential electricity bills as there won’t be extra lights and appliances running. Both of these benefits will lead straight into number 1 and your ability to increase cashflow

  • More organised and easier to maintain

At the point when you move into a more modest home, it helps you to eliminate the mess. You will realise that you had rooms that you never went into that just stored things that you never even used. It can be a lot more time consuming and involve a lot more effort keeping a large property clean. What is the point of all the extra upkeep when these spaces aren’t even used? You may find downsizing will free up time from cleaning and help you de-clutter some useless items that have just been collecting dust.

  • Able to obtain a home that suits your needs

As people age, things like stairs can become barriers being hard to climb while increasing the risk of falls and injuries. Also, the ability to drive can become more of a hassle, especially if you live far away from shops or family. By choosing to downsize, you can decide upon a home that suits your specific needs and requirements rather than continuing to put up with something that you’ve had for years that doesn’t have the accessibility or convenience that you need. 

  • You Acquire Time for Yourself

With fewer rooms, more modest spaces and a location that suits your needs, you'll invest less time and energy in maintaining your home and other responsibilities and increase your ability to pursue other areas of interest. 

Some Costs to consider when downsizing include:

  • Buying and selling in the same market

  • Real estate agent fees

  • Stamp duty

  • Legal fees; and

  • Furniture removal

You may look for a luxury lifestyle during retirement, or maybe just a simpler one. As children move away and the need for a large home becomes less valuable, choosing a small house can reduce large associated costs that could be a severe detriment to your retirement plan. These few advantages could help you maintain a comfortable lifestyle in the later stages of life. We can provide the assistance required to downsize properly so you can enjoy these benefits to their absolute fullest.