Because downsizing is such a big decision, it’s important to look at your finances, both in terms of the price of your future home and the profit you’re likely to make on your current property. While opting for a smaller place should earn you a healthy lump sum, there are a couple of things to bear in mind when you come to sell.
Firstly, estate agent fees, conveyancing and stamp duty can of course be costly, so factor them in early on to avoid unexpected outgoings further down the line. Secondly, the area you’re moving to could have higher property prices than your current location, so it’s worth taking that into consideration when you’re planning your move. Part exchange is a popular option because the sale of your property is guaranteed, there’s no chain (so delays or last-minute offer withdrawals won’t happen), and there are no estate agent fees.
As well as the initial lump sum from the sale, downsizing should reduce your monthly payments, given that you’ll be heating a smaller space. This is particularly true of new builds, which tend to be more energy efficient than older properties and require less upkeep. On average, monthly utility and property maintenance bills can drop, leaving you with enough extra per month to spend on the things you really enjoy. Have a look at our Cost of Living Calculator to see what savings you could make.