Downsizing? How to know when it’s the right time

Deciding when to downsize and where to move is seldom easy, regardless of how much money you have on hand, because selling a beloved family home where you raised your family and created memories over many years can feel like closing a door on a treasured chapter of life.

“It’s a very difficult decision for most people,” says Claude McKirby, Co-Principal of Lew Geffen Sotheby’s International Realty in cape Town’s Southern Suburbs and False Bay, adding that many tend to mull over the idea for years, often leaving it too late because of the strong emotional ties to their home or even the pressure and sense of obligation to host large family gatherings like Christmas. 

“And while it rarely makes sense to rattle around in a property that’s far too large for the sake of one day a year, reasons like this are all too common for delays in downsizing.

“In most cases, it’s better to make the move to a smaller home while you’re still fit and healthy and able to not only make the move with ease but to embrace and enjoy the next chapter of your life.”

Whether you’re looking for a simpler lifestyle, want to reduce expenses, or just feel that your current home is too large for your needs, downsizing can offer a fresh start, however, McKirby cautions that timing is key.

“Moving too early or too late can complicate the process, so it’s essential to carefully weigh the pros and cons.”

McKirby cites the following factors to considering when deciding on the right time to make the move:

Empty Nest: When the Kids Have Moved Out

One of the most common reasons people downsize is because their children have grown up and left the house. Once the kids are gone, the house can feel too large, with rooms sitting empty and extra space going unused. If you’re finding that much of your home is now a burden to clean or maintain and you’d rather be doing other things, this may be a sign that it’s time to move to a smaller place that better fits your current needs.

Key consideration: Before making the move, ask yourself if your children will need to return home temporarily, such as after college or during job transitions. Also, consider whether you’ll want space for future family gatherings, especially if you anticipate grandchildren in the near future.

Maintenance is Becoming a Challenge

As homes age, maintenance needs increase. From yard work to repairs, upkeep can become both time-consuming and expensive. If you’re finding it difficult to keep up with routine maintenance or repairs are becoming a financial burden, it might be time to consider a smaller, lower-maintenance home.

Many people opt for townhouses, simplexes or apartments in complexes that offer amenities like landscaping services or repairs handled by the homeowner’s association (HOA). A smaller property can reduce the stress of maintaining a larger home, freeing up more time for hobbies, travel, or relaxation.

Key consideration: Be mindful of the costs associated with HOA fees and ensure that these costs don’t outweigh the savings from reduced home maintenance.

Financial Considerations

Another primary motivation for downsizing is the potential financial benefit. A smaller home generally costs less to maintain, heat, cool, and insure so selling your larger home and purchasing a smaller one may also allow you to pay off any remaining mortgage and even boost your retirement savings.

Additionally, downsizing can reduce property taxes so if you move to a smaller home or one in a less expensive neighbourhood, you could see significant savings in this area. For retirees or those approaching retirement, these savings can make a substantial difference in stretching the budget.

Key consideration: Make sure to account for all costs associated with selling, moving, and purchasing a new home. Even smaller homes can come with substantial upfront costs, so factor in transfer fees, potential renovations, and moving expenses.

You’re Ready for a Lifestyle Change

A large home often comes with a lot of responsibility, and downsizing can offer the chance to embrace a simpler, more streamlined lifestyle. If you find yourself feeling burdened by the space you own, downsizing might offer a welcome relief and free up time for other pursuits. Moving to a smaller space can encourage you to declutter and minimize belongings, allowing you to focus on experiences rather than possessions.

Smaller homes, particularly complexes in urban or retirement communities, can also provide access to more amenities like walking paths, parks, or cultural attractions. If you’re interested in moving closer to a vibrant city, the beach, or even closer to family, downsizing can be the gateway to living in a more desirable location without the burden of a large property.

Key consideration: Think about what you want your new lifestyle to look like. Consider proximity to amenities, transportation, family, and hobbies. This move should not only suit your needs today but also provide the lifestyle you desire in the years to come.

You’re Spending Most of Your Time in a Few Rooms

If you’ve noticed that you rarely venture beyond a few key rooms in your house, it might be a sign that you’re ready to downsize. As families grow older or circumstances change, the need for multiple bedrooms, large dining rooms, or expansive living spaces diminishes. If you find yourself consistently gravitating toward one or two rooms in the house, it’s a good indication that your home no longer suits your needs.

Key consideration: Take inventory of which spaces you truly use, and which ones are going unused. If you’re heating, cooling, and maintaining rooms you rarely use, downsizing can lead to significant savings on utility costs.

Health or Mobility Concerns

Health and mobility challenges are another major factor in deciding to downsize. As we age, large homes with multiple stories or sprawling layouts can become difficult to navigate. Downsizing to a single-story home or a home with accessibility features such as wider doorways, grab bars, and ramps can improve safety and make day-to-day living more manageable.

Additionally, moving to a smaller home or a retirement community often means access to services that can help with medical needs, social activities, or home maintenance. Many active adult communities offer wellness centres, organized social events, and on-site assistance, making them a popular option for those considering a downsized lifestyle.

Key consideration: If you anticipate needing assistance with mobility in the future, look for homes or communities that are equipped to meet your needs as you age so that you can age in place. Consider accessible layouts and proximity to healthcare services.

The Real Estate Market is Favourable

Sometimes, the decision to downsize can be motivated by a favourable property market. If your current home is in a desirable area and property values are high, it might be the perfect time to sell and take advantage of the market. Downsizing during a seller’s market could give you the financial flexibility to purchase a smaller home in a more affordable area or invest the proceeds elsewhere.

Key consideration: Even if the market is hot, it’s important to remember that your next home purchase should make financial sense. Don’t rush into a new property just because the market is good for sellers—ensure that your next home meets your long-term needs.

“Deciding to downsize is deeply personal and depends on a variety of factors, all of which need to be considered to ensure that you make the right decision at the right time,” says McKirby.

“Leaving it too late can mean you’re not as able to manage the upheaval of a move and could also end up having to sell in a hurry, which often means compromising on price.”

On May 25, 2022, an insightful article was published, offering valuable information, featuring Ana Roberts of Just Property Upper Highway, and Graham Ross of Just Property Blouberg, says that another great benefit of downscaling is that small spaces require less furniture – a few great statement pieces allow for simple, minimalist décor and a beautiful, welcoming home at a fraction of the cost of furnishing a big house. And the cleaning is a breeze!

Less clutter equals less stress, and isn’t that what we are all looking for now?

Tips for cosy-home hunting:

Location, location, location – You want to remain close to your family and friends, and have ease of access to stores and other amenities such as doctors, hospitals etc. Narrow your search to areas that tick these boxes.

What are your deal breakers? Does the home offer the main assets that are important to you, for example, a good kitchen, nice family space,  shower etc?

Current wants vs future needs – If you are downsizing because the children have moved out and you are getting older, consider a single story with the ease of access rather than a property with stairs that may cause a problem later.

Growing pains – Will you be able to handle the upkeep of a big garden, or is it time for something smaller that is more manageable? Will your pets cope with a smaller space; is there somewhere nearby where you could walk them?

Fit for purpose – Will your favourite furniture fit in the new space? Make a list of every piece with which you can’t part. Take measurements. Then take a tape measure with you when you start narrowing down your list of potential new homes.

Storage war – Is there enough cupboard space in the bedrooms and the kitchen? Do you need outside storage too?

Paper trails – Remember to ask for compliance certificates, even those that aren’t required in your province (for example, gas installations and solar geysers should come with a compliance certificate – if something goes wrong and you don’t have one, your insurers may refuse to replace the geyser, or cover damage caused by a gas issue).

Complex questions – If you are moving into a complex or an apartment, be aware that there may be the added expense of levies, clubhouse fees and/or security. Ask about historical escalation rates and request a copy of the body corporate rules (if applicable.)

Ask your neighbours if there are any noise issues, does sound travel through the walls and ceiling? How old is the plumbing, the lifts etc – upgrading such items is very expensive and you’ll have to contribute. What parking is available for guests?

Article courtesy of property24.com