The deal with downscaling
Category Advice
We've been conditioned to believe that bigger is better, but in the property space this notion is being challenged regularly as the focus shifts to space optimisation.
There are various reasons for downscaling, including financial constraints, changing lifestyle needs and increasingly simply a preference for a smaller home that still meets all the homeowner's needs.
For years downscaling tended to be the reserve of those around retirement age, looking to swap the big family home for something smaller and more manageable. "Today people across age brackets downscale and increasingly it doesn't have anything to do with the cost of the property," shares Wilmot Magopeni, Leapfrog Franchisee for the Sunshine Coast.
He shares that location and lifestyle are two of the main factors that influence the decision to downscale. "We often see that people choose a smaller property in an area they really desire, rather than a larger place in a location that they find less appealing," he says. Before the onset of the pandemic and the impact it had on the acceleration of the adoption of remote work, this had a lot to do with people preferring to live closer to their place of work in order to avoid traffic, even if that meant a smaller home.
The lifestyle motivation to downscale typically has to do with the responsibility of managing and maintaining a large property. "Clients tell us that they don't want to spend their free time tending a large garden or spend a large portion of their expendable income on routine home maintenance, which means that often the solution is to opt for something smaller and more manageable in terms of upkeep," Magopeni says.
This observation aligns to a growing global sentiment around the more meaningful use of our time and resources, as espoused by the likes of Becoming Minimalist.
Irrespective of the reason for downscaling, it's likely to be a stressful process. "Some experts reckon that moving home can be as stressful as major life events such as death and divorce. There are typically a lot of moving parts involved in a move, which is why it is crucial to approach downscaling with care, consideration and a comprehensive plan," says Mapogeni.
Work with professionals
Most property-related decisions have financial implications of some sort, which is why it is advisable to consult your financial advisor about the decision to downscale.
Some sources suggest that the average difference between the selling price of a medium-sized home and the cost of a small property is negligible," Magopeni says. He adds that costs such as sales commission, bond registration, transfer duty and the associated legal fees, as well as the cost of physically moving your possessions needs to be taken into account.
Similarly, a trusted property professional can be invaluable in assisting you with the sale and/or purchase of a property.
The possessions problem
Downscaling invariably means you'll have far less space for your possessions, which necessitates a major purge. "For some people part of the reason for going smaller is to consciously get rid of the things they no longer need or use, while it's trickier for others to let go of beloved possessions," Magopeni says.
The best way to approach this situation is to deal with it in good time, rather than delay the decision about what to do with things until moving day. "It helps to have a plan and to go through things systematically and with an open mind," Magopeni advises. The organisational guru Marie Kondo's advice is to question whether a possession "sparks joy". If it does, it stays. If it doesn't, it goes. While this methodology may be too much of a simplification, there are countless resources online for helping one deal with possessions.
"Possessions don't simply need to be discarded. There are hundreds of charity organisations across the country that welcome donations of any kind. You could also consider selling some of your things on platforms like Gumtree or Facebook Marketplace," Magopeni says. Another option is to rent a storage facility, of which there are plenty in all the major metropoles, to store things until you've made a decision about what you'd like to do with an object.
Downscaling can be a very liberating process but one that should nevertheless be approached with care, consideration and a clear plan.
Author: Leapfrog Property Group
