Type ‘cost of living’ into any search engine and you will find countless articles how to save money and reduce outgoings. From advising to taking your shower at the gym rather than at home, to the best way to heat a room this winter, there is no shortage of tips and advice.
The cost-of-living crisis is affecting everyone in the UK and there is a plethora of advice – good and bad – for those looking to cut costs. However, if you are a homeowner and have sizeable equity in your property, you might like to think about downsizing to save money and free up some capital.
This is not a decision to be taken lightly, of course. There are a number of pros and cons to consider before taking the leap and putting your luxury house on the Norfolk property market – it’s something that should be thought about carefully, ensuring that it is the right thing for your personal circumstances. Some of the pros and cons to consider are:
Pros –
- Release some much-needed cash
- A smaller house = less council tax to pay, cheaper to heat, possible reduction on insurance, etc.
- It enables you to make that move closer to loved-ones.
- If you have a mortgage, downsizing could reduce your monthly payments, or even enable you to become mortgage-free.
- More manageable size. Less cleaning and gardening equals more free time for you to do the things you love.
Cons –
- Less space for your possessions, which may mean that you have to pay storage costs for items you don’t want to get rid of.
- Depending on the type of property you are downsizing to, may mean that you will be in the same market as first-time buyers, which is a competitive market.
- If your family still live at home, downsizing might not be an option, unless you can persuade the children to share a bedroom.
- You may have to move out of an area you love.
- Lastly, don’t forget to include estate agents’ fees, stamp duty, and moving costs when doing your sums.
Downsizing isn’t for everyone. There are those that have spent years, gradually moving up the property ladder, might not want to start moving down it again. Or those that have made much more than a home at their current property, they’ve made a whole lifestyle based on where they live. It is also not financially suitable for everyone. It’s worth reiterating that downsizing is not a decision to be taken lightly.
However, downsizing doesn’t mean that you have to sell your beloved family home. Depending on your circumstances, you could rent out your home and move into a much smaller rented property which will enable you to earn some income off your home.
Once you have weighed up the pros and cons and decided that downsizing might just be the ideal solution for you to free up some cash, then you will need to get your house valued.
To get you started on your downsizing journey in Norfolk, or to find out just how much your property is worth, contact us today at homes@melanieprestige.co.uk to arrange for a free, no-obligation valuation.
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