Property Downsizing: What Are My Options?
When you get near retirement age, you are always considering what your day-to-day life will look like. There are so many changes happening – to income, to family – that you might not immediately think about where you will live. When your children move into their own homes, you may feel like your house is too big for your needs. You might start thinking about downsizing your property.
Your Options for Property Downsizing
1. Buy a smaller house. Moving to a smaller home is a great idea for many reasons. You can live independently and still have a yard and garden to yourself. In most cases, your costs will decrease because there will be less maintenance required. If you have a new home built, you can make it just the way you’ve always wanted to. You can take advantage of new developments in the building industry, including prefabricated homes.
2. Move into a retirement village. If you wish to move into a community of people who are also retired, there are plenty of retirement villages being developed across New Zealand. You are able to participate in activities and you have support nearby. Consider the cost of this option as the cost is very different to normal residential ownership and in many cases, you are simply buying the right to live in the village.
3. Buy an apartment. An apartment gives you the benefits of living independently but takes away some of the property maintenance required. You won’t have to take care of lawns and gardens anymore but you may need to adjust to living much closer to your neighbours. Make sure you review the body corporate rules so that you are aware of how common repairs will affect you.
4. Sell the family home and rent. You may wish to reduce the ties you have to property so that you don’t have to take on as much responsibility. Some retirees prefer to sell the family home and rent property instead. This frees up your assets but it make create instability in your housing (both in costs and continuity). However, it may allow you to try living in a new neighbourhood before you decide to build a compact home in the area.
There can be other options such as moving into a granny flat on your children’s property, or council-owned flats. Think about how you want to live and what your habits will become as your life shifts. We work with many people who are downsizing their property so contact us to find out more about our luxury, factory-built homes.