Finance:Downsizing (property)
Downsizing refers to when a buyer purchases a property which is smaller in size or lower in value than their current home.
Reasons to downsize
There are multiple reasons why a buyer may want to downsize, such as having less inhabitants in the home, a higher cost in bills or wanting a change of location.[1]
An analysis of Finnish households found that downsizing was more appealing to lower income, single-person households.[2] Downsizers valued the presence of services that would enable aging in place.[2]
A survey of older Australian families that chose to downsize identified four primary factors contributing to the choice to downsize: a desire for a change in lifestyle, an inability to maintain the home, children moving out of the household, and retirement.[3]
Difficulties with downsizing
Many people downsizing from a larger property to a smaller one will find their current possessions, appliances and furnishings will be unable to fit in the new smaller home.[4] Some people will find it especially difficult to accept the need to dispose of possessions, and this will cause some considerable anxiety.[5] Following a disposal methodology can be a useful approach if the task seems impossible: One approach is to determine what furniture, displayed items and commonly used items are suitable for and will fit in the new home: remaining belongings will need to be sorted into what is to be kept and what is to be disposed of.[6]
Disposal strategies
After the basic fundamental items that will move to the new home have been determined, there will remain a set whose fate will need to be decided.[7]
See also
- Home equity loan
- Property ladder
- Move-up home
- Downshifting
References
Footnotes
- ↑ becker, joshua (2010-07-30). "12 Reasons Why You’ll Be Happier in a Smaller Home" (in en-US). https://www.becomingminimalist.com/12-reasons-why-youll-be-happier-in-a-smaller-home/.
- ↑ 2.0 2.1 Gibler, Karen M.; Tyvimaa, Tanja (2015-10-02). "Middle-Aged and Elderly Finnish Households Considering Moving, Their Preferences, and Potential Downsizing Amidst Changing Life Course and Housing Career" (in en). Journal of Housing For the Elderly 29 (4): 373–395. doi:10.1080/02763893.2015.1055029. ISSN 0276-3893. http://www.tandfonline.com/doi/full/10.1080/02763893.2015.1055029.
- ↑ Judd, Bruce; Liu, Edgar; Easthope, Hazel; Davy, Laura; Bridge, Catherine (January 2014). Downsizing amongst older Australians. Australian Housing and Urban Research Institute. ISBN 978-1-922075-42-0. https://apo.org.au/sites/default/files/resource-files/2014-01/apo-nid37263.pdf. Retrieved 2023-06-14.
- ↑ Ward 2010, pp. xiv–xv.
- ↑ Ward 2010, p. xv.
- ↑ Jameson 2015, pp. 12–13, 15.
- ↑ Jameson 2015, pp. 36–37.
Sources
- Reader's Digest (2021). "10 reasons to downsize your house". https://www.readersdigest.co.uk/money/property/10-reasons-to-downsize-your-house.
- Jameson, Marni (2015). Downsizing the Family Home : What to Save, What to Let Go (1 ed.). New York: Sterling. ISBN 9781454916338. OCLC 935530916.
- Post Office (2021). "A Guide to Downsizing your property". https://www.postoffice.co.uk/mortgages/downsizing-your-property.
- Ward, Lauri (5 October 2010). Downsizing Your Home with Style : living well in a smaller space. New York: Harper Collins. ISBN 9780061170980. OCLC 191930906.
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