When you decide to transition from a large family home to a smaller home that accommodates your lifestyle needs, should you rent a more modest size home to try first? In our younger years, we usually start out renting before purchasing a home. The idea of renting where we want to live makes sense because it lets you experience life in a new location and different type of house. So, does it make sense to rent before you downsize? In this blog we compare renting versus buying when you want to downsize your family home.
Option 1: Renting
Renting a downsized home is often tempting because of the lower upfront cost. To rent provides you with the freedom to move if you don’t like the property or location.
The property manager or landlord handles the maintenance of a rental property. Also, you can move in once the paperwork is complete, avoiding any delay.
Living with less control over your property
Renting does come with challenges. Rent inspections mean that you have someone going through your home. It means that you are not able to modify your living environment without permission from the property owner. At the end of the lease term, you may have to move from the place you call home as the property owner’s circumstances have changed. There are always unknowns that may leave you feeling less confident about the future home situation when living in a rented property. Finally, expect the rent to increase at some point.
Option 2: Buying
Owning your home, in many ways, provides a sense of security and freedom—the freedom to make changes to your home in a way that suits your lifestyle.
Freedom and security
Owning your own home means that you can take full advantage of increases in property values over time. Home ownership provides a long-term investment as well as a place to call home for you and your family. Some homes are owned for generations and passed on through the family, where significant value is derived. When you own your home, there are no limits to customisation. You can paint, extend, subdivide.
The biggest obstacle to owning your property is the upfront costs. Plus, if you change your mind about the property or location, it can be costly in short sell for a profit – unless you purchased at below market value.
When you own your own home, you’ve got to manage the maintenance responsibilities, which for some downsizers doesn’t fit the lifestyle they want to lead.
So, which do you choose?
It’s always a good idea to explore all your options before settling on a home. Also, consulting with a financial expert may help you plan for your retirement with a budget that factors in all your lifestyle needs and wants.
New property developments are a great way to live because the maintenance is taken care of and new homes rarely require repairs. Best of all, they are located near lifestyle amenities for you to enjoy.
Purchasing a property off-the-plan is a smart way to own your home without the large deposit upfront. Buying this way enables you time to work out your retirement plan and sell your family home to downsize.
Find your ideal downsizer with Norm Carey
Everyone’s version of the perfect downsizer home will be unique to them. Some people prefer a luxury apartment building to stand-alone dwellings—experience matters when it comes to buying off-the-plan. View our portfolio of residential projects.
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