Downsizing - Would you do that or not and why?

UK007BullDog

Some people downsize, which means they sell their currently large or more expensive property, to buy a smaller or less expensive one, so that they are mortgage free when retiring.

Would you do that? Why would or would'nt you downsize?

Forever_Red

My plan is to downsize and also buy somewhere abroad, once the kids are older and maybe one of them has moved out. I hope to have my mortgage paid off when I'm 50, kids will be 21, 18 and 16. Only problem is I can't retire until 55 because of the new law coming into effect Apr 2010.
Oh well! another 5 years worth of pension payments may help in the end.

I just hope it all goes to plan...:beer:

Alan

kogsawelly

I have a good size 4 bed house - no mortgage. If i didn't have children i would very likely downsize when retiring/semi retiring to free up some equity. As i have children, i do not know if they will ever vacate or even be able to. If they do, i would like the idea of having spare bedrooms in case they need to come back.

ManAtHome

Not so much downsizing, likely to be more of a swap for somewhere abroad. No firm plans as yet, just a number of countries I'd like to spend more time in before deciding (or maybe just keep travelling).

Red - you can retire when you like, just can't start drawing any pensions until whatever age is in force at the time. Good idea to have savings and investments outside the pension to cover the gap (or maybe the downsizing will leave enough spare).

Forever_Red

ManAtHome wrote: »

Not so much downsizing, likely to be more of a swap for somewhere abroad. No firm plans as yet, just a number of countries I'd like to spend more time in before deciding (or maybe just keep travelling).

After seeing a few people regretting the move abroad, I think I would get a 2/3 bed semi / terraced house (currently 4 bed det) so that if I didn't like abroad or only wanted to spend 6 months there, I had something to come back to.

ManAtHome wrote: »

Red - you can retire when you like, just can't start drawing any pensions until whatever age is in force at the time. Good idea to have savings and investments outside the pension to cover the gap (or maybe the downsizing will leave enough spare).

I have a couple of endowments up when I'm 50, but I think that may get spent on a few birthday parties (50, 21, 18 & 16) I didn't plan that very well.:p

Alan

MissScarlett_3

We are emigrating hopefully within the next couple of years and will sell up. We also own a property outright that will remain rented and if it all goes pear shaped we have that that will be earning money. I couldn't stand the thought of downsizing TBH unless the area is much much better than the area we currently live in.

auntymabel

I want to downsize but keep putting off doing anything about it because I feel overwhelmed by the practicalities. It makes good sense for me to downsize now the kids have left so I must make the effort.

POSSETTE

We did it last year and we are only 38 and 45.Sold 4 bed house and bought 3 bed brand new, less mortgage,cleared £26k of debt and now dont have to do overtime or second job!!

Will do it again in a few years to a 2 bed house when step daughter is settled elsewhere.

highly recommend it, its just bricks and mortar at end of day, i love our life now its 10 x better!

tomstickland

I live in a 1 bed flat and my only downsizing opportunity would be a studio flat.

EdInvestor

tomstickland wrote: »

I live in a 1 bed flat and my only downsizing opportunity would be a studio flat.

Can you not go to a cheaper area? Some people actually downsize in order to upsize

dwsjarcmcd

We have already done it, sold a large 5 bed house to buy a 4 bed place, paid of the mortgage and are currently buying an apartment in the south of France, on which we will have a smallish mortgage. My only child lives with her mother and there is still plenty of room for her /family visits.

Best thing we ever did