The new term in property is ‘rightsizing’. This has arisen as people look for more suitable or cost-effective dwellings.
Rightsizing can be an exciting way to solve your property problems. Take a look at what’s involved and how rightsizing may work for you.
What is rightsizing?
Rightsizing means selling your home or giving up your lease and switching to a new property that is more suitable for your needs and lifestyle.
Some people rightsize by selling their family home and finding something smaller and more manageable. It may be in a new location or close to where they already live. This strategy works because it can release equity, reduce mortgage costs and cut home maintenance expenses.
Others rightsize by finding a home that meets the needs of their family. It doesn’t always have to have more bedrooms but it can include separate living spaces so teens have a separate area to relax and be with friends.
Older couples who rightsize sometimes find they still want extra bedrooms so they can accommodate visitors, but they can achieve this with a smaller unit or townhouse instead of a freestanding home.
You have the option to rightsize by selling a larger home and buying a place in the city as well as out of town. This way you can divide your time between locations. A strategy like this can work for empty nesters or professional couples who don’t have children at school.
Rightsizing can also be about facilities and convenience. For example, an apartment with access to a gym and pool can be a more suitable lifestyle choice than a freestanding home.
The final option for rightsizing is to buy two properties on one title. This way, you can lease the granny flat or second home as a way to generate income, or you can use it as separate accommodation for family members.
How to know if it’s time to rightsize
It’s time to rightsize if your property is no longer serving its purpose for you.
There is no point paying a mortgage on rooms you never go into. Even if you own your home outright, if you sell to rightsize you can give yourself some more financial flexibility.
The first step to rightsize is to start having a look at what’s out there.
Attend some inspections and start picturing what life would be like in a different place. Often, you’ll start to see the benefits and get excited about the possibilities.
Next, it’s time to reach out to a real estate agent who can give you some advice about how easy it will be to sell your property and the price you can achieve. The good news is there is plenty of demand for homes in Australia at this point of time and many are selling within a matter of weeks after being listed online.
Your selling agent may also be able to recommend your next place, depending on the location you are looking to buy in.
Most people who rightsize say they feel an immediate sense of relief because their new home makes so much more sense for their lifestyle.
If you’d like help to find the right property or sell your existing one, reach out today at teresa@teresaberger.com.au
