Our Guide To: Downsizing Your Home

It’s not just empty nesters that choose to downsize their homes these days. Rising property and energy prices mean that we all have to think twice about how many bedrooms, bathrooms and home-theatre rooms we really need to live comfortably. If you’re thinking of making the move to something a bit smaller, check our guide to downsizing first to see how much you’ll really save.

Smaller may not always cheaper…

Downsizing can mean different things to different people. For many, it’s a retirement decision. The kids have left home, the house is too much work to maintain, and a two-bedroom unit makes perfect sense. But if you’re trading in the suburban block for a penthouse apartment with harbour views, it may not necessarily be cheaper!

…But it does make financial sense

Not only will you (usually) save on the mortgage, or have cash left over after selling the family home, you’ll also save money in so many other ways. It’s cheaper to heat and cool a smaller house, you’ll spend less on groceries if you have a smaller fridge and you’ll have lower maintenance costs. And of course if your house value is lower, it will be less expensive to re-build – so your home insurance premium will decrease too.

De-clutter and save even more

Moving to a smaller home forces you to take a serious look at the amount of stuff you have. And guess what? If you have less personal property to insure, you’ll save money on your contents insurance too.

Don’t forget to check all the details

If you’re moving from a house to an apartment, then you may no longer need buildings insurance. Check your liability with the body corporate – what would happen if the building caught fire? Make sure you let your insurance company know all the new details – it’s worth comparing policies again online and updating your personal contents checklist, because your needs will be quite different.