When downsizing their house, many buyers forget to take off their rose-coloured glasses, which might leave you broke and back where you started.
CEO of Harcourts South Africa, Richard Gray, agrees that making such a substantial change requires having a plan.
Gray's best advice is to properly plan your move, whether you're downsizing for a simpler lifestyle or upsizing to accommodate a larger family.
Moving may go much more smoothly with thoughtful planning and organisation.
Gray urges those wishing to upsize to think about the maintenance and financial obligations that come with a larger house, in addition to the need for more room.
When you are downsizing or expanding, sit down and make a list of important criteria.
Consider this from the standpoint of what you require rather than what you desire:
- How many bedrooms does the home need to have?
- What size living room, kitchen, or garden is ideal for you?
- What drove you to relocate?
- Are you, for instance, downsizing to pay off your mortgage more quickly?
You may choose the best course of action for you and your family by being honest with yourself about the type of property you're looking for.
It can be challenging to consider something subjectively like a home, but keep in mind the reasons you're downsizing or upsizing and concentrate on these to prevent disappointment.
It might be simple to lose track of your spending plan, especially when you're upsizing, and begin looking at properties that are way out of your price range.
Even though selling your current house can help pay for some of the property, you still need to keep the numbers in mind.
Determine exactly how much you must spend and how much beyond budget you are willing to go.
“You should consider the higher expenditures associated with upsizing and determine your ability to make mortgage payments”, said Gray.
Even if you want to downsize, you should still manage your money wisely. What drives your decision to relocate to a smaller home?
Find out how much items like council tax and bills will cost in a different area if you want to reduce your spending. Your mortgage may cost less, but everything else may cost more.
Gray explained that downsizing involves more than just gaining more space. Be ready for rising power bills, higher property taxes and rates, and more maintenance.
While moving to a smaller home can frequently result in financial savings and less maintenance, Gray emphasised the potential problems, adding that it also needs a large degree of decluttering and organisation.
“Starting this process early and being ruthless with what you keep and what you let go are two things we advise,” he added.