Feeling overwhelmed by the idea of downsizing as retirement approaches?

You're not alone. Many of us find ourselves faced with the prospect of downsizing. 

Whether it's to simplify our lives, reduce maintenance, or free up equity, downsizing can be a daunting task but ultimately a rewarding journey.

Here's how to prepare for downsizing and make the transition smoother: 

Sort Out Your Budget:

First things first, get a clear picture of your financial landscape.

Seek a market appraisal from a trusted real estate agent to understand the estimated value of your current property. This information will be invaluable when determining your budget for a new, smaller home.

Once you determine the price, remember to include legal fees, real estate agent fees, removal costs, and any other related expenses, as well as consider how much you want to set aside to support your retirement savings, before you complete your budget.

This will provide you with a ballpark figure and help you make an informed decision on what houses you should be looking at.

Research Several Properties:

Once you have a budget in mind, make a list of your "must-haves". Your must-haves could include the number of bedrooms, office space, bathrooms, or even the level of maintenance required both internally and externally.

While thinking about your "must-haves", you must also factor in what it might look like for you getting older. Proximity to amenities like supermarkets, medical care, and recreational facilities might be crucial to consider especially when things like driving become a challenge in the future.

It might be worth exploring different housing options, such as retirement villages or houses closer to town, based on your needs and preferences.

Aurum on Clutha residents

The Future You:

Getting older may mean your living space may have to look a little different.

Some common considerations that people look into are single level with few stairs/stairways, internal access garage, low-cost heating, ensuite, wheelchair access and wet floor shower.

Consider factors like medical dependency or convenience to amenities when making your decision too. Although homes like these are usually more favourable and can mean more demand, hiking up the prices.

In Preparation For Downsizing:

When downsizing you're not going to have the same storage space you once had, so you'll have to start decluttering and getting rid of items you no longer need. 

Consider giving back your children's belongings and consider hosting garage sales, donating to charity or putting extra belongings in a storage unit.

While you might be excited to get rid of unwanted items, there may be quite a few sentimental items that can be hard to part with. Downsizing often requires making tough decisions about what to keep and what to let go, so start preparing months in advance to allow plenty of time for the decluttering process. Your real estate agent can also help you make decisions around decluttering.

There are many areas of the house such as your kitchen or closet space that are likely to be smaller after you downsize, so it's a good opportunity to simplify and lighten your load across all areas of your life. 

With less square footage available, larger items like furniture pieces and heavy appliances might also need to be downsized or creatively arranged to fit the available space more efficiently.

Don't Leave It Too Late:

One common mistake is leaving downsizing too late. Waiting until health issues arise or mobility becomes limited can make the process more challenging. Start planning early to avoid unnecessary stress and ensure a smoother transition.

Getting started early gives you extra time to spruce up your place for open houses or viewings. You can freshen things up with a new coat of paint or improve the lighting by switching out bulbs to better appeal to potential buyers. 

If you'd like some more suggestions, you can check out my article for some tips on getting your home ready for showings.

Get The Help You Need:

Consider involving family members in the downsizing process. They can provide support, help with decisions, and assist with the physical aspects of moving. 

Keeping lines of communication open ensures everyone is on the same page and can alleviate some of the burdens associated and decrease the stress levels with downsizing.

Conclusion:

Downsizing can be a significant life transition, but with careful planning and preparation, it can also be a fulfilling one.

If you need some expert advice and guidance on budgeting, moving logistics, or navigating the real estate market, don't hesitate to reach out to me. We can support you every step of the way on your downsizing journey throughout Central Otago.