Why downsizing your home is a good idea
Whether you’re looking to cut down on utility bills, move to a smaller home or receive additional income from a property sale, downsizing your home may be an option for you. Many home owners decide to downsize their home when their children move out or when they want a house that requires less maintenance as they get older. Downsizing your home will usually have a positive impact on your finances. Utility bills will be lower with fewer rooms to heat and clean, maintenance costs will be reduced, and you’ll receive a lump sum for the sale of your larger home.
Choosing the right Home?
Before you decide on where you want to move to it’s important to keep in mind what you need from your new house. Compile a checklist of what you need from your new home before you go house hunting.
If you’re looking for a home with lower maintenance costs, check which type of heating system is in the home you’re moving to, what energy rating the home has, how big the rooms are, are the fixtures and fittings in full working order, will you need to make any changes in the future if you become less mobile, is the garden larger than you require, are there many plants and greenery to maintain and much more.
If you’re a looking for a home that better suits your needs as you get older, you may need to consider buying a bungalow instead of a two-storey house, whether there’s a downstairs bathroom, are local stores and facilities close by, is it in a safe area, are there social activities in the locality, will the house be accessible if you are dependent on walking aids etc.
The Purchase Cost
Estate Agency Fees
Hiring an estate agent to sell your home can cost you thousands. Consider selling your home yourself on the internet. There are plenty of websites that provide you with the ability to sell your home online. However selling your home without the help of an agent can be stressful in the long run so it might be worth paying an estate agency to do this for you.
When calculating your budget for your new home, do not forget to include extra charges that may be involved. When purchasing a new home, you will be required to pay stamp duty. Stamp duty in Ireland is currently at a rate of 1%. So if you purchase a home worth €300,000 you will be required to pay €3,000 in stamp duty.
Set aside some of your budget for moving costs. This doesn’t just include the cost of getting a rental van or courier, you may also require new fixtures or fittings or furniture.
You may be charged by your mortgage provider to change your mortgage from one property to another. Discuss any additional charges without your bank before you commit to a new house.