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Downsizing and retirement planning
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Our plan is the reverse. A similar size property in a more expensive area.0
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My thoughts on downsizing.
20 years ago we were living in a semi detached house in the SE of England, unlikely to ever afford much more than a semi, and in any event I found SE England too crowded, too expensive and (where we were) too far from the sea and mountains.
So we moved to the Highlands where we now have a detached house that we never could have afforded down south, a much lower population density, and the detached house cost less than our semi down south so money left over that we used for buy to let properties that have now been sold and we are retiring.
I can (just) see the attraction of staying somewhere crowded and expensive when there is plenty of well paid work available. But when you retire and no longer need to seek employment, just what keeps you in a very expensive and crowded place, when you could move somewhere much nicer, much cheaper and much less crowded? That might by by the sea, amongst mountains or other nice scenery. Whatever takes your fancy. And moving somewhere cheaper in our case meant upsizing and releasing money.
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OP it's not clear if you are still working but if so then it may make sense to use the funds released from downsizing to allow you to increase pension contributions for tax efficiency reasons.My wife and I have looked at downsizing (from a semi to a flat or small house) but we would probably want to move to a more expensive area and that would come with insane stamp duty costs so we wouldn't be able to release any funds.0
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ProDave said:My thoughts on downsizing.
20 years ago we were living in a semi detached house in the SE of England, unlikely to ever afford much more than a semi, and in any event I found SE England too crowded, too expensive and (where we were) too far from the sea and mountains.
So we moved to the Highlands where we now have a detached house that we never could have afforded down south, a much lower population density, and the detached house cost less than our semi down south so money left over that we used for buy to let properties that have now been sold and we are retiring.
I can (just) see the attraction of staying somewhere crowded and expensive when there is plenty of well paid work available. But when you retire and no longer need to seek employment, just what keeps you in a very expensive and crowded place, when you could move somewhere much nicer, much cheaper and much less crowded? That might by by the sea, amongst mountains or other nice scenery. Whatever takes your fancy. And moving somewhere cheaper in our case meant upsizing and releasing money.0 -
MarzipanCrumble said:There is little incentive to downsize, especially if you don't really need the equity it might release. I live in a great location overlooking a park and lake within 3 miles of city centre but public transport is dire.
Loathe to get a flat, service charge/ground rent/council tax) and I have a cat who would not appreciate 'prison'.
Houses that I like are about 200-250k cheaper but often the council tax is more and not as insulated as my house is. Take into account all the costs of moving and really why bother?
At some point the lure of less people will outweigh these factors and we will probably move west. Liberating cash by downsizing is a backstop - it is not part of our planning.I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.1 -
I think the Highlands would be too isolated for my liking.1
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