It is not uncommon for people to move house at least twice in their lives. When you buy your first house you may find that you are somewhat restricted in terms of choice because of budget restraints. When you have some equity in this house you may decide to move again to a bigger property.
Some people do choose to move again after this stage, perhaps when their children have moved out and they feel that their current property is too big for them. This is when people start to consider downsizing as an option. There are pros and cons to downsizing depending on your personal circumstances and these will be explored in more detail in the following paragraphs.
Advantages Of Downsizing
The main advantage to downsizing is that it has the potential to save you a lot of money each month. If you live in a smaller property then the chances are that your mortgage will be a lot lower. You may even be able to buy the property outright with the proceeds of the sale of your current property.
You will also be able to make savings on your utility bills as a smaller house does not cost as much to run. Maintenance of the home will also be easier when your home is smaller. The gardens may not be as large and even just general day to day cleaning is easier when you are in a smaller property.
Disadvantages Of Downsizing
If the area that you are living in does not have many smaller properties that are suitable then you may need to move further afield which can be difficult when you have ties to a certain area. If you do move to a smaller home then you may be pushed for space if your children do need to come back home or if any other guests come to stay.
If you decide that downsizing is not for you then there are other options available to you. If the size of the mortgage is causing you problems then you may have the option to remortgage or look at a Equity Release Mortgage or Lifetime Mortgage. This can extend the period of the mortgage so that your monthly payments are lower. This can also be a useful way to raise a bit of extra cash at the same time which can be used to pay off other debts such as loans and credit cards.
Staying in a bigger house also means that there are more opportunities to earn an income. If you have a spare room then this can be rented out to a lodger which can bring in a decent amount of money each month, especially if there are other facilities that you can offer as well.