Is it time to downsize?
Many homeowners opt to downsize their living space in order to upgrade their lifestyle.
Whether you’re keen to live in a place that doesn’t need as much maintenance, the children have grown up and moved out, or you’re about to retire and would like to simplify your lifestyle, we look at the options available to downsizers.
Sell and buy
If you find yourself rattling around in a place that has too many rooms for your needs, and too much garden maintenance for your liking, it might be time to downsize.
Financially, this could mean selling the family home and buying something smaller but of higher quality, or in a more desirable area.
Or you might find you have some money left over with which you could enhance your lifestyle or even start an investment portfolio.
If you haven’t set foot in the property market for some time, it might pay to do your research in the lead up to the busy spring auction market. Consider getting pre-approval to put yourself in a position to buy when you see the place you want. Doing your due diligence will ensure you are buying with your head and not just your heart, and getting to know an area will help you to evaluate asking prices and property values.
How will you downsize?
Downsizing might mean buying an apartment, a townhouse, or a smaller house in the town in which you already live, or maybe making a seachange or treechange to realise a long-held dream to live in a much-loved area.
If you buy closer to the centre of town you may be less reliant on your car and able to get around on foot or by public transport. You might also find that having cafes, restaurants, theatres and museums on your doorstep will enrich your day-to-day life. Especially if you have more free time now that you no longer need to devote hours each week to maintaining a larger property or garden.
On the other hand, if you are downsizing but upgrading in terms of the value of the property (buying something more expensive than your existing home), you might need to refinance. Speak to a lending specialist to discuss your options.
However you decide to downsize, a bridging loan might enable you to take your time to find a new property that’s just right before selling your family home.
Expand or start a property portfolio
Some downsizers may be in a position to hold onto their family home as an investment property when they buy something else to move into.
Others might find themselves with more equity once they have downsized, and able to consider buying an investment property as well.
Many options to consider
Whether you decide to sell up to finance your move, or to refinance to expand your property portfolio, speak to one of our lending specialists to help you determine the best move in your situation.
Thinking of downsizing? Why not make house-hunting easier with our Property Guide app. You can search through property listings, look up recent sales histories, find out detailed information about potential suburbs and lots more.
This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice.