The ups and downs of downsizing
Category Property Advice
2020 has proved to be a tough year for all of us. With many companies being forced to let staff go and enforce pay cuts as a result of COVID-19, South African families are thinking hard about ways to save money. Since your rent is likely to be one of your biggest monthly expenses, finding a smaller, more affordable home may seem like the solution to your problems, especially if your current lease is coming to an end. Downsizing will be the right decision for some families, but for others, it is a sacrifice that should not be made.
Is downsizing the right answer for you?
While moving into a smaller property can definitely save you money, you need to consider whether the saving is significant enough to justify moving house. For starters, moving comes with its own set of costs, including paying a deposit for rental at your new home and paying a removal company. Then one has to factor in the time and stress involved with packing up your home and unpacking it on the other side. While moving to a smaller home may seem like a great way to save money, you'll also need to consider how much time your new address will add to your daily commute. In a nutshell, you will need to be sure that the amount you'll be saving every month is enough to justify the move.
The advantages of downsizing
Being under financial pressure affects every aspect of life. If you are living in a property that is suddenly beyond your means thanks to the effects of COVID-19, then relocating to a smaller home can mean lower rent to pay, as well as lower electricity and water costs. The time and cost associated with keeping your home clean will also be lower. The psychological benefits that come with lowered financial pressure cannot be overstated.
Also, families relocating from a freestanding house into a sectional title property within a complex or estate will reap the benefits of convenience, greater security, and possibly a pool and garden which they do not need to maintain.
Another advantage of downsizing that is often overlooked is that it forces you to clear out the clutter. Most families have a surprising amount of old clothing, toys, books, papers and other items that should either be thrown away or donated to a charity.
The disadvantages of downsizing
Downsizing, of course, means having less space in your home. Any family considering downsizing should think carefully through the practicalities of this. For example, if a member of the family is now working from home as a result of lockdown, then he or she will still need a workspace in your new home. It may not be practical for children to share a bedroom, especially if they are getting older. Storing furniture and other possessions that you do not want to sell or give away can be challenging in a smaller home. If the end result is needing to hire a storage unit, the financial benefits of moving are more than likely negated.
Care should be taken to not underestimate the emotional impact that downsizing can have. Moving into a smaller space can cause friction within families, especially if there are fewer bathrooms or if a corner of the living room needs to become a home office.
Deciding to downsize is not something that should be done as a kneejerk reaction to being retrenched or being forced to take a pay cut. The answer of whether or not moving to a smaller home is wise will be different for every family or individual. If you have decided that downsizing is the right move for you, then CSi Sales, Rentals and Property Management has a huge variety of available properties that could become your next home. Contact us to discuss your next move.
Author: CSi EUF