Thinking about downsizing? // CampaignAgent
If you’re thinking about downsizing your home, there are a few things to consider before you get started – including how to manage your cash throughout the move.
Downsizing your home can make a lot of sense – whether your kids have finally moved out of home, or perhaps the maintenance for your current house is getting too hard to manage – downsizing can help you make the most of your finances.
While downsizing can help you unlock some of the equity in your home, there are a few costs to consider before you get started.
Up-front costs to consider before downsizing
Some of the immediate costs you might face are real estate agent fees, the cost of marketing your property, stamp duty and in some cases, legal fees. Most vendors are surprised to learn the cost of marketing their property. If you’ve sold a home before, you may have even been asked to pay upfront before your property was listed on the market. Luckily, there are new ways to pay for real estate marketing that won’t hurt your wallet.
One thing to consider before downsizing is what furniture you’ll keep, and what you could potentially sell. Moving to a smaller house might mean some tough choices on what to keep, but if you choose to keep most of your furniture, you may have to consider paying for a storage facility.
When down-sizing, most people will have to rent between selling their current home and purchasing their new one. Whether you’re waiting for settlement to access your equity, or you couldn’t bid on your next place without financial certainty – the cost of renting should be considered.
Most home-owners are asset rich but cash poor. Despite years of paying off their mortgage, most people won’t have direct access to the cash they need to fund their next move. Our latest product, DepositNow, is designed to help people who are downsizing manage their cashflow throughout the selling process, by giving them access to the equity in their home before settlement happens.