Welcome to this week's
Finance Fridays. Last week we were looking at solar
panels on top of your house and this week it's all about the size
and location of your house. For many people the idea of downsizing
your home is simple. You sell one large property in order to move to
a smaller one. The facts and figures behind this can be a lot more
complicated.
Moving in retirement
Most people who downsize
their property have retired. The situation is very simple in that
they are living in a house designed to accommodate far more people.
Downsizing can offer the following benefits:
If your new property is all
on one level it can be easier to get about in.
Smaller or no garden to
maintain.
Fewer rooms to clean.
Lower monthly bills in the
form of council tax, gas and electric and possibly even water bills
if you are not using so much water in the garden.
Downsizing to a cheaper
area
If you move into a house as
a couple and then have children you may soon find that the house that
was plenty big enough for two becomes a tight squeeze for three or
more. One way to upgrade the size of your property is to downsize
your location and move to a cheaper area. In many areas the next town
or village a couple of miles away can have less expensive property in
it but just not as fashionable. Do your homework though as to other
reasons why property prices are lower. Is it scheduled to have a big,
new road or HS2 rail line going through it? Is it under a noisy
flight path? Does the local factory emit a lot of smells?
The costs of downsizing
One of the aims of
downsizing is to save money but of course moving house has many costs
attached to it. Do you have the immediate funds to enable your house
move? You can spend thousands on legal fees, surveys, estate agent
fees and removal costs. Don't forget the dreaded Stamp
Duty as well which needs to be paid on completion.
Once you move you'll be
wanting to put our own mark on the property with new curtains, light
fittings and flooring. If you are moving further away from shops,
schools and your work also factor in the increase in fuel costs for
your car.
Alternatives to
downsizing
If you find you can't move
there are ways to make your current home work for you. If your home
simply feels too big perhaps think about taking in a lodger. If you
have an university near you some students may prefer a more homely
environment. You will also get a break from them when they got home
for the holidays! Under the Government's Rent
a Room Scheme you can earn up £4,250 per year tax-free by
letting out furnished accommodation in your home.
If your house seems too
small have a major declutter. Do you need all those books, CDs and
DVDs. Do your children still play with all those toys? Have a clear
out of your loft. Are you storing stuff just for the sake of it? Old
clothes you will never wear again, boxes for electrical equipment
you've had for years and broken TVs and games consoles can all go. If
you find you now have space in your loft perhaps think about a loft
conversion.
Do you need to move house?
What are your property plans for the future?
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My property plans are to stay where we are for now - but I'm sure we'll think again when the kids are older and need somewhere else to live....
ReplyDeleteMy parents are in the process of downsizing from a very large 3 bedroom house, to a smaller 1 or 2 bedroom bungalow. For us, we're looking to upsize, as we've outgrown our house >_<
ReplyDeleteSo many people we know have downsized recently, starting with both sets of parents! We need to upsize as we have outgrown our flat.
ReplyDeleteWe are staying put until the children are over 18! The house is in a great location near town, schools etc but the street does get crowded at school run time so I'd like to be out of that when the kids leave home!
ReplyDeleteI think there can be many great reasons to downsize - we however are as downsized as we cold go at the moment. x
ReplyDeleteI am not sure that I ever want to downsize. We talked to my mum about it when my Dad died and she wanted to stay put, plus her furniture wouldn't have fitted
ReplyDeleteWe need to upsize desperatley but need people to downsize so there are houses available
ReplyDeleteI like my 4 bedroom though one day I will have to down size probably
ReplyDeleteI don't know if we'll ever down size. Maybe when the girls are settled with their own families but for now it's stay as we are or up size maybe
ReplyDeletewe only have a two bedroom house so it would be pretty impossible to downsize much. As it is the kiddos are going to share a room but totally makes sense if you are not using the space! x
ReplyDelete