Downscaling | 5 tips to help make the journey easier.
Category Advice
With the increasing cost of living coupled with the highest interest rates in nearly fifteen years, many bondholders may be looking to downsize to make their money go further. Whatever the reason for moving to a smaller home, there are a few things to consider making the downscaling journey a little easier.
Maintaining a largely underutilised property might not make financial sense if some family members have moved out or if the homeowners' lifestyle needs have changed. The best way to downsize is to be sure that you're making the big move to go small for all the right reasons. From a practical perspective, the proper way to go about it is to be systematic and organised as you downsize from a larger to a smaller home.
Here are the top 5 tips for downscaling:
Measure both spaces.
Be sure to measure your existing furniture to make sure it can fit into the new home. Avoid the nightmare of having the couch that wouldn't get up the stairs by measuring all possible entrances and exits to make sure you will be able to move the furniture into the home without having to disassemble it first.
Buy new furniture after the move!
If your old furniture will not work in the new space, wait until after you have moved into the new home before ordering any new furniture. Not only will this give you one less thing to move (which will save on moving costs), but it also allows you the time to live in the home and get a sense for what furniture will work in the smaller space.
Store music and memories in the cloud
Moving to a smaller home often means far less storage space. Photo albums and CD racks can take up a lot of unnecessary space. Tough as it might be, now is that time to move to digital music platforms and digitise photo albums so that they can be stored in the cloud. Keep just a few of the special photos by framing them and hanging them on the walls in the new home.
Sort through one room at a time.
Look at how much storage space you will have in your new home as a guide for how much you will need to clear out in your current home. It can be emotional to get rid of the items you have accumulated over the years, which is why it is best to work systematically and tackle one room at a time. Begin with rooms you use least and categorise items into boxes marked as: "Must keep", "Donate", and "Rubbish". Keep the momentum going by simply putting the items that you are unsure of to one side. Once you've sorted through everything, you can allow yourself the time to go through these items again to decide whether to hold onto them or get rid of them.
Turn unwanted goods into cash or kindness.
Instead of taking everything you don't want to the local dump, sell your unwanted goods online. Not only could selling your items help you afford new items for your new home, but others will also be happy to turn your 'trash' into their 'new' (to them) treasures. You could also help out those in need by donating your unwanted goods that are in good condition to thrift stores and charity shops.
When downscaling, it is important to be certain that the property you have chosen will suit your current and future lifestyle needs. If you are forced to sell in less than five years, which is the window after which you're most likely to see a return on your investment, you might lose out financially. While homes appreciate in value over time, it is important to bear in mind all the other costs that go with a property transaction - like transfer costs, agent fees, moving and relocation costs, etc. - which eat into the capital you have available. If you are thinking about downsizing and don't know where to begin, get some free advice from your nearest Real Estate Agency.
Less clutter equals less stress, and isn't that what we are all looking for now?
Tips for cosy-home hunting:
Location, location, location - You want to remain close to your family and friends, and have ease of access to stores and other amenities such as doctors, hospitals etc. Narrow your search to areas that tick these boxes.
What are your deal breakers? Does the home offer the main assets that are important to you, for example, a good kitchen, nice family space, shower etc?
Current wants vs future needs - If you are downsizing because the children have moved out and you are getting older, consider a single story with the ease of access rather than a property with stairs that may cause a problem later.
Growing pains - Will you be able to handle the upkeep of a big garden, or is it time for something smaller that is more manageable? Will your pets cope with a smaller space; is there somewhere nearby where you could walk them?
Fit for purpose - Will your favourite furniture fit in the new space? Make a list of every piece with which you can't part. Take measurements. Then take a tape measure with you when you start narrowing down your list of potential new homes.
Storage war - Is there enough cupboard space in the bedrooms and the kitchen? Do you need outside storage too?
Peace of mind - Check the security features of each property you visit. Find out how safe the area is and what security is available. Ask the neighbours, chat to the local police, and phone a security company that focuses on the neighbourhood.
Guest appeal - Consider how many bedrooms you will need going forward - if your kids have all moved out of home, you may only need one spare room for when they or your friends come to stay.
Paper trails - Remember to ask for compliance certificates, even those that aren't required in your province (for example, gas installations and solar geysers should come with a compliance certificate - if something goes wrong and you don't have one, your insurers may refuse to replace the geyser, or cover damage caused by a gas issue).
Complex questions - If you are moving into a complex or an apartment, be aware that there may be the added expense of levies, clubhouse fees and/or security. Ask about historical escalation rates and request a copy of the body corporate rules (if applicable.)
Ask your neighbours if there are any noise issues, does sound travel through the walls and ceiling? How old is the plumbing, the lifts etc - upgrading such items is very expensive and you'll have to contribute. What parking is available for guests?
Author: Extract from Property 24
