Downsize

mrs_simplify

Hi I just wanted to know if anyone is going to downsize in 2011. I guess it is always installed in us that you climb the property ladder so to speak.
I live in a 2 bed property, with 2 bathrooms , conservatory I dont use. Have a back garden and a garage. I guess I would like to clear the mortgage or have a small mortgage and downsize. This would probably be to a flat to enable us to clear mortgage as things are not cheap!. There are 4 of us. We decluttered so much last year that we wouldnt really have that much to move either!
I just wanted to know if anyone plans to make good use of any equity and downzise to reap the benefits. Opposed to always being skint.
We are pretty frugal but its just the general cost of living coupled with everything else that has made us want to do this. It will be a change of life. I guess you get to a point in life and you realise happiness is more important when you are younger you are striving and climbing I guess:)

*Jellie*

I'm loving the username! I'm not planning to downsize but it sounds like a good move for you.

mrs_simplify

Thanks Jellie! any others going to downsize??:p

Carafan

Hi, we downsized 5 years ago and for us it was the best thing we have ever done financially. At the time all our friends were wanting bigger and better and thought that we were mad however our quality of life now has kind of proved that it was the right thing for us.

Good luck with your plans.

dimbo61

The problem with moving/downsizing is A the cost and B the neighbours !
Now with a flat you might have even more neighbours and more noise.
You already live in a 2 bedroom property with 2 bathrooms so how much better off will you be by downsizing ?
There are 4 of you ! so how do the rest feel and is now a good time to sell.

Secret_Saving_Squirrel

Hmmm - I agree with Dimbo.. How much would you gain, bearing in mind that the cost of moving will be about £15.000.... Might be better to overpay as much as possible and get the cost down.

Squirrel

mrs_simplify

I guess there is going to be some thi:ongs to think about. A concrete floored flat for a start

LilacPixie

are the 4 of you adults? what is the family make up like? couple plus adult kids due to fly next soon or is it young kids? realistically could you get a decent smaller property for 85k less than the realistic selling price of your current home? would a cheaper property affect your quality of life, thinking noisy neighbours as there is always more noise in flats etc.

JimmyTheWig

Agree with dimbo about the costs involved.
Fair enough if you lived on your own in a 4-bed place, but it doesn't sound like you can go much smaller than you are currently. Which suggests you won't be buying for much less that you are selling.

Depends where you are, etc, but lets say you can buy for £25k less than you sell for.
£25k would make a nice dent in your mortgage.
But you've got to pay estate agents fees for selling, stamp duty for buying, solicitors costs for both, removal costs, etc. Plus any work / decorating that needs doing to the new place.
So you may go through all this hassle and end up with a smaller place for just £10k off your mortgage.

Do any of you have time on your hands?
You could make use of the spare space by storing stock to sell on eBay?

mrs_simplify

Hi we are made up of two adults and 2 kids 10 & 14.
Where we are is big enough for us , but when I say downsize I mean downsize the mortgage figure.As far as our home goes its not a rambling house! Where we live in sussex it would be hard to buy a house the best property to allow us to downsize in monetary amount would be a 2 bed flat which we could buy for £180,00.00 - £200,000.00., Property could be sold for about £265,000.00 - £275,000.00 (mortage is £70,000.00)
It does take a lot of thinking about as I would not have a garden etc, have to work out flat maintanance costs and ofset it all for it to be worth it. But the other part of me wants to be free from a mortgage with a simple existence!:o

newgirly

Have you thought about joining the MFw's and trying to overpay your mortgage a bit? Its such a bad time to sell at the moment anyway, could you not try that for a year or so and see how you feel then. There are lots of people on here who manage to overpay a little here and there and it can really make a difference.

I know lots of people bring up kids in flats, we had our DD in a flat when she was small, but if you have the option to stay where you are I personally would stay put.
Plus I have two 10 year olds and I know how hard it would be to keep them quiet in a flat, its hard enough in a house:D