Thinking about downsizing your home? Let’s talk about how

At some point, the house bought to raise a family will become too large. The kids will move out, maintenance will add up and lots of extra space will probably go unused.

But just like buying property for the first time, downsizing is a big commitment that needs careful thought and planning.

Saying farewell to a home is a challenging task. For many there’s an emotional weight that may make it difficult to consider selling.

And while there’s no perfect science of knowing when to downsize, below we’ve highlighted some signs that it may be something to consider.

1. Monthly housing expenses exceed 30%

If your monthly expenses are more than 30% of your retirement income, it might be time to consider downsizing. Small homes usually have fewer expenses and conversely you also might get a financial boost when selling your family home. You could even put this money into a term deposit to earn some interest. 

2. Maintenance has become overwhelming

Depending on the size of your home, maintenance can be a daunting chore. If you feel the cost or the physical activity it takes to maintain your property has become overwhelming, then it might be time to downsize to a less demanding location. Remember that home ownership shouldn’t be a source of physical and mental exhaustion.

3. Lots of empty, unused space

If there are multiple rooms collecting dust or a massive garage with a single car, it might be worth reconsidering if you need the extra space. Extra unused space still has to be cared for! A smaller place can be used efficiently and won't need cleaning as frequently. 

4. Doesn’t meet your needs as you get older

Our needs change the older we get–staircases can become difficult to use, steep driveways may be risky and bathtubs might be a bit dangerous. There’s no shame here - it happens to all of us! But it's essential that the home you live in allows you to be worry-free. 

Once you’ve committed to downsizing the next step is selling your property.

If you’re looking to sell your property, there are a few things to consider first:

1. Get professional pictures taken. Highlight any renovations and detailing you’ve done on your property over the years to make it stand out. Great photos can get buyers excited.
   
2. Consider the seasons. Believe it or not, the seasons impact real estate. If you have a great outdoor pool, summer might be the time to put your property on the market. Or if you have a beautiful fireplace, selling in winter might be the ideal time to show it off. 
   
3. Spruce up the outside. First impressions matter, so it's vital that you create a beautiful and welcoming front porch–consider it your elevator pitch to potential homebuyers.

If you’re not ready to say farewell to your property but want to downsize, maybe rent out the place and earn some extra cash. 

Notably, Mozo’s database shows several lenders have slashed their investor home loan interest rates, so it could be a great time to become an investor.

Just for example, there were more than 250 rate cuts in the investor home loans tracked in our database last month. Take Easy Street, which offers one of the lowest variable rates in our database, starts from 5.14% p.a. (5.18% p.a. comparison rate*).

Whether you choose to sell or rent out your property, make sure you read Mozo’s home selling guides. Alternatively, if you want to rent out your home start researching investor home loan options below.