The four-bedroom house that you have along the suburbs could have been useful if your children were at home. However, knowing that they already have a life of their own, most likely, your house will start to get a little too large and unmanageable.
Therefore, it is only reasonable to consider downsizing your property, not just to help lessen the responsibility of taking care of it, but most importantly, gain some valuable returns to repay a mortgage loan or if it has already been sorted out, to increase your savings.
The leaders in this challenging financial market are the investors and those who are open to the idea of downsizing their property. Provided that markets are growing, today might just be the ideal time for you think about coming up with a smaller living area.
Buying Before Selling
If you have plans on downsizing to increase your monthly gains, buying first before selling is highly recommended. Meaning, you are buying the property at the current rate and sell it later at a much higher value.
It is also important to gain access on the appraisal record of the property in question so you will be able to determine the amount you have spent through the years. You can also consider delayed settlement if you have already found a new place to live in. This way, you will have some time to sell your current house. However, if the seller will not give you a delayed settlement, you will be forced to pay for the property.
Another option is to apply for a short-term mortgage loan. This is of course if you do not have an existing mortgage. The downfall is the fact that some loan providers are hesitant on lending borrowers for a short period of time.
Double the setback
Many people would prefer to buy a property at the place where they currently live, since they already have all the right connections and resources in the area.
However, if you opt to downsize into a different location, probably out of town then you could enjoy the doubled benefit of purchasing a property in a much cheaper market and paying less charges for a smaller property.
Some people consider buying two properties at almost the same time using the proceeds they gained from their own properties, like acquiring a beach house while at the same time getting a new pad in the city.
Another option is by purchasing two units from the same area, one unit for investing and the other one for living in. Alternatively, acquire a good home for your children while they are still in college. You might also want to consider living in a smaller property and make use of the proceeds to help catch up with any deficit in your pension savings.
Regardless of what you are doing, if you are a parent with no child at home, it is most likely an ideal time to think about downsizing to put together your retirement savings and invest in your future plans.
Learn more about downsizing a property from expert mortgage brokers from Rockingham and see the returns of your investment.