Imagine having fewer rooms to clean, cheaper bills to pay and spending less on your home each month. There was a time when downsizing was the reserve of older people once their children had flown the nest. However, today people do it for many reasons such as those related to personal finances, priorities and lifestyle choices. But what does this mean in the context of Chorlton and Old Trafford?
Let’s start off with the basics – how much cash could you free up? In Chorlton and Old Trafford, the average two-bed costs £160,000, three-beds cost £246,500 and four-beds cost £332,000. In crude terms, this means that each room a homeowner sacrifices could free up around £86,000 – useful if you are thinking about retirement or if your circumstances change.
It is true that the majority of downsizers are empty nesters who do not need such a big home anymore. These people are doing the housing market a considerable favour. One of the critical ingredients of the housing crisis is that the housing stock is being used inefficiently with families stuck in smaller properties and older couples rattling around in 6 bedroom houses.
Those deciding to downsize will need to find a place to put all their ‘stuff’. The contents of a three-bedroom property will not fit into a one bedroom, so you will either need to sell a few items or put them into storage. On the plus side, selling some of the things you have accumulated over the years provides the opportunity to declutter and make extra money.
Sometimes when people downsize, they choose to rent rather than buying another property, especially if they are undecided as to what they want to do in the long term. There is a market for buy-to-let landlords who rent their property to people who have just sold their home but aren’t sure what their next long-term move will be.
Downsizing used to be synonymous with a reduction in homeowners’ standard of living. However, today it is seen as the opposite. More people are deciding to downsize in order to have more money in the bank, whether that’s for holidays, cars or just having a bit extra for a rainy day. If you would like to talk about the possibility of downsizing in Chorlton and Old Trafford, pop into our office for a friendly chat.