Tuesday, 5 May 2015

Are you thinking about downsizing your home?

 

Downsizing your family home can open up the door to a brand new lifestyle.  Our guide to downsizing will lead you through the different aspects involved and explore both the challenges and the benefits of downsizing.

Why downsize?
There are many reasons to consider downsizing your family property.  The move may be financially motivated, come through a desire for less property maintenance and upkeep, or a wish to be closer to family.  You may also be planning ahead and considering a move to a retirement village or residential park for the active social communities they offer and the support and care which may be available should you require it in the future.

There are several different options when it comes to downsizing.
  • Rent/buy a smaller property: If you’re thinking of moving to a new area, it might be worth considering renting, at least in the short-term, so you have an opportunity to explore the new area and get a better idea of where you’d like to be before you commit to purchasing a property or finding a long-term rental property.
  • Park homes: Park homes are single-storey homes built on dedicated residential parks in rural or semi-rural locations.  They are a popular and affordable choice, especially if you’re looking for somewhere with a strong sense of community.
  •  Retirement villages: Retirement villages are also a popular choice for those who wish to maintain their independence but want a variety of amenities on their doorstep and the option of increased care, should they require it in the future, without having to move again.
Benefits:
There are many benefits to downsizing.  Financially, downsizing is likely to both free up equity secured in your property and offer reduced outgoings on an ongoing monthly basis.  The finance released can be used for a variety of different purposes; perhaps there’s a trip of a lifetime that you haven’t quite got round to taking yet, or you’d like to be in a position to make a financial gift to loved ones.  Equity can also be invested to provide an ongoing monthly income and improve your financial situation long-term.

A large house also brings with it a substantial amount of property upkeep and maintenance, which can be significantly reduced when you downsize your property. 

Challenges:
Downsizing, and the decluttering that undoubtedly accompanies it, can be an emotional process.   Possessions that have been in your home for a number of years will be difficult to part with, but it may be helpful to think about how they might benefit other people? Donating items is a great way to combine downsizing with helping others or contributing to a charity you’re passionate about.  The practicalities of downsizing can be daunting, but approaching it one room at a time will make the task more manageable and stop you feeling overwhelmed.

Overview:
Downsizing seems to be an increasingly popular option.  In the last three years more than 11% of enquiries received by Quick Move, the UK’s largest home buying and property part-exchange company, has been from home owners looking to downsize.  Prudential further confirms this by suggesting that 41`% of homeowners over the age of 55 are planning to sell their house in the near future, with 75% of those planning to downsize.  And what does the released finance get spent on? Luxury purchases, such as holidays, are one of the top things downsizers are spending their money on, along with investments and pension pot boosts.



After retiring, Yvonne and Bill King wanted to downsize and enjoy more quality time together.  They decided that a residential park could offer the sort of lifestyle they wanted, but were keen to move while they were still young enough to enjoy everything the park had to offer.

After the Kings met the owners of the park, they were delighted to find they also lived at the park and were always on hand if anything was needed.  The couple were keen to progress the move as swiftly as possible and secure a quick house sale.  They decided that part exchanging their current home through Quick Move Properties might be the right option for them.  


Mr King explains: “We looked into part exchange and liked everything about it, particularly the speed at which a sale could be completed.  I was slightly dubious and kept wondering what the catch was.  I was aware that it would be below market value but I was pleasantly surprised when an offer was made.


“I worked out that although I may have achieved a bit more on the open market, when you take out the £6,000 estate agent fees and the £1,000 solicitor fees that you don’t have to pay with Quick Move Properties’ part exchange, it suddenly became a relatively small price to pay for all the time, stress and risk we saved.”


As well as a quick house sale, part exchanging their existing house offered the Kings peace of mind – they knew exactly how much money they were getting for their property and which date they would receive that money on, without any worry about the sale falling through. 
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