When should you downsize?
Downsizing is the number one reason for selling a property.
That was the conclusion of Rightmove’s latest research. Which found that in nine out of ten regions in the UK, the most common reason for moving was the desire to downsize. Why?
Let us explain.
1) To reclaim money
Many experts have recognised the need to reclaim money for a more manageable lifestyle.
Speaking to the Independent, Rightmove director Miles Shipside said: “You’ve got a lot of people that have overstretched themselves financially who have decided to downsize to lower their mortgage payments or release some cash so that they can pay off some of their debts.”
Indeed for some, there is a financial upside to a downsize.
2) To manage the space
People may also downsize to live in a more manageable space.
For example: see the research by the Intergenerational Foundation, a group which seeks to ensure fairness for future generations. The research looked into the reasons why many consider downsizing, and it involved 24 in depth interviews.
The results had a common theme. Downsizers think: “Liberation comes from their new and less encumbered life… and a smaller house to manage.”
“They wished to realise the value of their asset and move to somewhere smaller that was cheaper and easier to run. None regretted their decision; most felt their new home was more manageable.”
3) To relocate
A third reason people downsize is to live in a more desirable area.
Research suggests that almost a third of over-55s plan to sell up and downsize to a new location. And the South West of England is the most sought after destination.
It follows pressure from MPs, who called for a stamp duty holiday for older people to encourage them to move to smaller homes.
4) Refusing to move?
Indeed there is a notion that many people are sat on older properties too large for them, refusing to downsize.
But reports suggest that many find it hard to downsize. And that this can happen for a number of reasons.
So the fact is many people are considering this option, only to find difficulties and obstacles in the way of finance.
How do you finance a downsize?
If you need access to finance to complete your downsize, a bridging loan for downsizing your property can help.
Call our Manchester office today on 08000 44 84 84 for more information.