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What is Downsizing?

what is downsizing?
What is downsizing and what does it mean to your lifestyle? It's not all bad news!

As you age, you realise that you need to determine where you plan to enjoy your silver years. For many people, downsizing is the natural progression.

It’s not just for people about to retire, though. It’s something that many people start thinking about as they reach 50 or see their children leave the nest. For some, it’s about finances and for others, it’s all about saving space and reducing the amount of work they need to do around the home and yard.

That’s what downsizing is – it’s selling the large home you have been living in and trading it for a smaller place. There are a variety of options available so, you can think long-term and aim for a retirement village or simply look for a flat in the city. There are a number of things that you should consider before you start the process.

Planning Ahead

What is downsizing? It’s not just moving into a home that will cost less than you are currently paying. For many downsizers, that’s merely an aside.

The main focus is to create a plan and know what you want and why you want it. So, to plan you need to first determine your goal. What is your goal? Do you have retirement in your sights? Is it a career shift or a lifestyle change that is driving you? Or, is it just a desire to get everything in line to enjoy life to the max? Set a budget for your new home, that’s the place to get started.

You should also consider where you want to live, and what type of home it is you want. It could be a smaller house, a retirement village, an apartment or even a Granny flat. It really depends on how much maintenance you want to look after – if you enjoy gardening, a smaller home might be the right move for you. If you don’t, an apartment will make life much easier.

The key truth of downsizing

What is downsizing? Well, you will need to start letting go of many of your material items. The biggest downside to it is that you have to downsize the items you own to fit into your new smaller home. It’s time to sift through your old clothes and think about what you really want to take with you.

Additionally, you should avoid purchasing a new home until your current home sale is complete. Don’t buy any new furniture or décor until you know exactly what your new space will look like. If you ultimately choose to move into an apartment you should think about how seniors friendly it is. You will also want to think about how close you are to shops, public transport, and health services.

The government does offer incentives to people who are looking to downsize, particularly for people over 65. Additionally, some states offer their own schemes to incentivise downsizing. You can seek out the assistance of financial advisers and legal experts.

What is downsizing? It’s a new chapter! So, while it might be an emotional roller coaster, it is the start of something exciting. Why not read our seven key considerations for downsizing or the Biggest regrets that Retirees (and how to avoid them) to save you some time and money.

Read more Downsizing News & Tips

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