The pros and cons of downsizing in retirement

Whatever your current age, there will come a time when you may want to consider downsizing. There are many reasons for downsizing, including children leaving home, wanting to relocate to the countryside or coast and financial pressures, but one of the main reasons is retirement.

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The best thing to do when considering downsizing is to consider the pros and cons and work out the best decision for you and your lifestyle.

Pros

– Release cash

Depending on the value of your property, downsizing may enable you to release a substantial sum of money that you can use to enjoy your retirement and to spend on your new property, making it the home of your dreams.

– Relocation

If you or your partner are retiring from a job that has required you to live in a specific town or city, you can take this opportunity to move to the countryside or the coast so that you can enjoy a new area and a different pace of life; however, the pandemic has turned the property market on its head, with the demand for properties outside London causing prices to rise.

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– Maintenance costs

When moving to a smaller property, the maintenance costs will be less. The bills will also be lower, so your monthly outgoings will decrease.

– Suitability

You may use the opportunity of downsizing to buy a different type of home; for example, if you live in a townhouse and have several flights of stairs, you may want to consider a bungalow to prepare for mobility issues in later life. Similarly, you may currently only be able to access your local supermarket and amenities by car and may prefer to look for a property where you can access shops and other local services more easily.

Cons

– Stressful

Moving can be stressful and emotional, and this can be especially true when there is a chain. Making sure you have the support and help from friends and family and are aware of the costs involved will help to make your move go smoothly.

– Cost

In addition to the cost of the property, there are lots of other costs to take into consideration, including legal fees, survey and mortgage costs, and stamp duty. There will also be the renovation costs of the new property. Before committing to a move, make sure you do your sums and get conveyancing quotes from companies such as Sam Conveyancing to ensure that downsizing is going to be cost-effective.

Whatever your reasons for downsizing, planning ahead will mean you can be confident that you are making the right decision for yourself and your family when the time comes.

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