Downsizing (property)

Downsizing refers to when a buyer purchases a property which is smaller in size or lower in value than their current home.

Reasons to downsize

There are multiple reasons why a buyer may want to downsize, such as having less inhabitants in the home, a higher cost in bills or wanting a change of location.^[1]

An analysis of Finnish households found that downsizing was more appealing to lower income, single-person households.^[2] Downsizers valued the presence of services that would enable aging in place.^[2]

A survey of older Australian families that chose to downsize identified four primary factors contributing to the choice to downsize: a desire for a change in lifestyle, an inability to maintain the home, children moving out of the household, and retirement.^[3]

Difficulties with downsizing

Many people downsizing from a larger property to a smaller one will find their current possessions, appliances and furnishings will be unable to fit in the new smaller home.^[4] Some people will find it especially difficult to accept the need to dispose of possessions, and this will cause some considerable anxiety.^[5] Following a disposal methodology can be a useful approach if the task seems impossible: One approach is to determine what furniture, displayed items and commonly used items are suitable for and will fit in the new home: remaining belongings will need to be sorted into what is to be kept and what is to be disposed of.^[6]

Disposal strategies

After the basic fundamental items that will move to the new home have been determined, there will remain a set whose fate will need to be decided.^[7]

See also

• Home equity loan
• Property ladder
• Move-up home
• Downshifting