Downsizing in later life can provide significant financial rewards, freeing up funds for retirement savings, reducing the cost of homeownership, and improving overall financial security.
- Lower housing costs: Downsizing to a smaller home or apartment can significantly reduce housing costs, including mortgage payments, property taxes, utilities, and maintenance costs. This can free up funds to use for other expenses or to save for retirement.
- Reduced home equity: Selling a larger home and buying a smaller one can provide a significant boost to retirement savings, as the excess home equity can be invested or used to pay off debt.
- Lower property taxes: A smaller home or apartment typically has lower property taxes, reducing the overall cost of homeownership.
- Reduced insurance costs: Downsizing can also lead to reduced insurance costs, as a smaller home or apartment may have lower insurance premiums.
- Increased cash flow: Downsizing can free up cash that can be used to pay for other expenses, such as travel, hobbies, or healthcare.
- Avoiding major repairs and renovations: Downsizing can help you avoid the need for costly repairs and renovations associated with maintaining a larger home.
- Cost savings on utilities and maintenance: A smaller home or apartment typically requires less energy and water to heat, cool, and maintain, leading to lower utility bills.
Our Parents Story
When our parents realised that living in our family home was starting to cause more problems than joy, we looked into alternative options.
The Whiston Court retirement community allowed them to get their independence back.
They purchased the leasehold on their two bedroom apartment. Knowing they had the security of ownership was important to our parents. They wanted to have the freedom to adapt and decorate the space as they felt appropriate without needing to seek permission. They also wanted the peace of mind of living without additional expense of rent.
It did take some adjustment getting used to a smaller property. However, the rooms full of light and the ease of access quickly resolved any feelings of change.