Managing Director of property investment company Quick Move Now, Danny Luke, looks at the increasing trend to downsize:
When we’re younger we work long hours and save hard in order to save up for a big, impressive house, but as we get older the space that we once craved can quickly become a chore and an inconvenience.
Perhaps your property was once a much loved family home, full of laughter, but it suddenly seems too big and quiet now that the children have grown up and left home? Or maybe you’re planning for your retirement and want to use the equity tied up in your property to realise some of your dreams?
An increasing number of people over the age of 50 are making the decision to downsize to a smaller, cheaper property – in fact, Saga estimates that as many as one in five people over the age of 50 would like to downsize – and they do so for a variety of reasons:
- They either don’t want to have to, or are struggling to, keep up with the maintenance of their exiting property
As you get older, a large house or sizable garden can begin to feel more of a burden than a luxury. Many people begin to feel that they either can’t keep up with property maintenance, or there are other things that they’d rather spend their precious retirement doing. The large property that once seemed so desirable can quickly lose its appeal.
- They’re keen to make new friends
Property developments aimed specifically at property owners aged 50-plus can offer a real draw in terms of the community it offers. Some of the higher-end retirement developments invest a huge amount of time and resources into providing a wide range of social activities and experiences, and connecting residents with similar interests.
- They want to release the equity tied up in their house to fulfil some lifelong dreams
Whether it the car of their dreams, a once-in-a-lifetime experience or a holiday property, many homeowners over the age of 50 are deciding to cash in on their existing property and using the hard-earned equity tied up in it to fulfil some lifelong dreams
Downsizing looks set to be a trend that will just keep increasing, especially in light of the increasing number of retirement properties currently being developed. At the moment less than 5% of retirees live in retirement property, but industry experts suggest that this figure is set to rise sharply in the next few years and will soon be in line with the US (17%) and Australia (13%).