The start of a new year is a symbolic time of change; an opportunity to reflect on the past and plan for the future.
With this in mind, January 2024 is the perfect time to assess whether this is the year you finally take steps to downsize.
Here are some questions to ask yourself or discuss with your family in relation to your home and your lifestyle. The answers may give you the motivation to make a change.
Is my home too big?
With only one or two people left in the house, do you really need so much space?
While the kids were still at home, four bedrooms and an extra sitting room were a blessing but, are they now becoming a burden? How much more time and less stress would you have without such a large home to manage?
Downsizing takes some time and effort but it will give you a lot of freedom.
Do I really need so much stuff?
From sporting equipment to craft supplies, we gather and collect things through our lives but eventually they have to be passed on. Many families find themselves with a lifetime of belongings to go through once someone has passed away. You have the option to reduce this stress for your family by starting to go through your things and decide what’s important and what can go.
Downsizing will trigger this process; you can give yourself plenty of time to make decisions and even make some money by selling items that are still useful.
How much does my home cost to run?
From insurance to air conditioning and maintenance, the larger your home is, the more it will cost you each year.
Moving to a smaller home can cut your running costs considerably. This can be a lifesaver if you are retired and have a more limited budget.
If you feel like you are constantly losing money thanks to a family home that is in constant need of repair, this is another clear sign that downsizing is a good New Year’s resolution.
Are stairs starting to become too difficult?
Larger homes can become more and more challenging to get around as you age. Homes with stairs, in particular, can make life difficult in retirement.
If you are finding it harder to move around your home, struggling to get up the stairs or get from one end of the house to the other, this may be a sign it is time to downsize.
The same goes for cleaning. If it is becoming difficult to get all the cleaning done regularly, then it may be time to move to a smaller and more easy to maintain home.
Would it be more convenient to live somewhere else?
Downsizing can give you a wider choice of where to live.
You might be able to use the proceeds from your older home to buy a small property in a suburb that you couldn’t afford if you were buying a four-bedroom home.
Whether you want to move closer to loved ones, into a bustling urban hub for convenience, or to a rural centre for peace and quiet, you will have a better chance to do so if you downsize.
Think about where you would love to live; would downsizing help you to afford this dream or at least a spot nearby?
Would it give my family better peace of mind if I downsize?
Speak to your family and you may find they have been worrying about you living in a big place on your own. Selling up to move closer to them or to a less high-maintenance place might help to reduce everyone’s stress and save your loved ones from having to constantly travel to see you.
How much more financial flexibility would downsizing give me?
The Boomer generation of Australians is often ‘asset rich but cash poor’. Selling your home and downsizing is the answer to fund a more comfortable lifestyle. Family homes are in high demand in Australia so you should be able to find a buyer relatively quickly, depending on your location and the condition of your home, etc.
Make downsizing your New Year’s resolution
Downsizing is a process and requires several steps but if you make it your resolution to change, you are likely to find yourself in a fantastic new place in a few months. Time will fly while you’re undergoing this process and before you know it you’ll be enjoying your new, more manageable home.
IMPORTANT: Any tips or advice contained in this article are general in nature and you should always seek professional advice from expert advisers about your individual situation before making significant financial decisions.
