A recent ‘industry insider’ produced some startling figures about downsizing and the property market. The gist of the story was that if the Over-65s all downsized they could release £1.34 trillion of capital and increase housing stocks by 4.2 million houses. We are not sure how those figures stack up but it did get us thinking.
As the saying goes, 50 is the new 40 – although try telling that to a Speed Camera – and many people don’t want to ‘move on’ just because they’ve reached a predetermined age. However, for some people it could be something to consider.
As we agents are oft heard to say “your property could be worth more than you think”. This can be more pertinent to those over 60. They have often been in the house many years and usually it was the family home and so is large and therefore generally worth more.
But the word downsizing can have negative connotations; it feels like you’re coming to the end of your days and that you’re ready for pipe and slippers when in actual fact for many downsizing that isn’t the case at all. For many it brings a new lease of life, with new horizons and new directions.
We’ve known people who have downsized and used the capital they have released to buy a small property overseas so they can spend winters in the sun. Or some have invested in a motorhome and travelled round Europe.
It also doesn’t mean that you have to move from a 6 bed detached to a one bed studio apartment – although that maybe the perfect solution for some. Even something as simple as considering another area in the town could see you in a house not much smaller, so still room for the family to come and stay, yet still releasing capital.
The age of the property could also be a factor. You maybe in a Period or character property which often hold more value than a similarly sized ‘new build’ house. So if you are in that position you could consider moving to something of similar size and still releasing equity.
That brings us on neatly to our other point that you can save time. No matter what house or who you are, houses take time to look after. The bigger and/or older the house, often the more time they take. They can often cost more for ‘like for like’ repairs as well, as old things often have to be replaced not repaired.
Simply moving to a new or newer house can cut down on the time you spend on the house, to give you more time to get out of the house. You could go the whole hog and moved to serviced apartments where most of it is done for you – though there’s usually a cost to that.
If you change the word downsizing for restructuring – a favoured word from the business world when they are downsizing to release more capital – then it can make sense for an awful lot of people, regardless of their circumstances.
If this has made you think then why not give us a call to chat through your options. Not only can we give you a free market appraisal of your house and value but as one of the leading agents in Rochdale we are well placed to give you best advice about your moving options.
Call us now and speak with Jason and you could be spending winters in the sun sooner than you think.