At first glance, downscaling seems synonymous with financial gain and it should be, but often, says property expert Lanice Steward of the Pam Golding Property Group, there are a few common mistakes that can easily be avoided. Here are a few tips to consider before you leap into the joyful-freedom of not maintaining a large property during your retirement years.
Calculate your number of moves
Is your next move a simple downscale into an apartment or smaller home, or are you ready for a retirement lifestyle? If it’s a downscale, remember that property is a long term investment, so give yourself time. Remember that your lovely new lock-up-and-go, or seaside cottage, needs an average of five years to appreciate in value to ensure financial gain. And when you factor in that selling a home includes transfer and commission fees, you don’t really want to transact twice in a short time. Allow time for the investment to pay for itself.
Waiting endlessly for the right price
Once you have made the emotional decision to move on, don’t be swayed by the well-meaning financial advisor who insists that you wait for the ‘right price’. Two years could go by and you may get that price, but remember that in that time you have also accrued the rates and taxes as well as the high utility and maintenance costs of owning a large home.
Throw out before you go to market
The fact is that ‘de-personalised’ properties sell faster and achieve better prices, this is because the new buyer can more easily visualise themselves in your space. If you have lived in your home for a long time, don’t wait to de-clutter, cluttered homes make a house look old. And that’s not you, you’re just starting an exciting new journey. Enjoy it.
If you are considering the exciting step of moving on, we recommend contacting Pam Golding Properties to find out more about the prices in your area and to obtain professional advice or a market evaluation.
