As we grow older – and the kids have flown the nest as they say – we may be inclined to consider whether we need all the space, and unused rooms in the family home.
The concept of downsizing has been gaining increasing popularity in Bermuda in recent years. But, moving from your large, and perhaps underutilized, property nowadays, to a smaller home can be a very worthwhile – but daunting – move.
As downsizing is a major life-changing event in your life, I consulted with Ed Williams at Coldwell Banker Bermuda Realty to get his expert advice on the matter.
BEFORE YOU START LOOKING FOR ANOTHER PROPERTY, YOU SHOULD IDENTIFY THREE PRIMARY MATTERS TO CONSIDER:
1. Financial impact – if you have equity in your current property and have no mortgage liability outstanding when you sell the current house, you need to work out how much cash you can expect to receive if you sell. That amount of “free cash” is critical to determining your level of interest in selling from the financial perspective. Consideration can also be given to investigate if it is cost effective for your existing home to be renovated into a duplex, allowing you to continue to live in a portion of the house, while the remaining portion becomes a rental accommodation. You need to consider your present level of income from pensions, investments, or employment income, your likely future financial needs, as well as whether you want to leave an inheritance for your loved ones in the form of investments.
Speak to your real estate agent before making any decisions. It is imperative to understand your financial status, what you may anticipate from the sale of your property; whether you should rent or buy again and the costs for each.
2. Physical impact – moving house is not an easy task. You may have been in your present home for years, perhaps a lifetime, and will have inevitably accumulated mountains of furniture, clothes, papers, and “junk”. The task of sorting through all of that and throwing much of it away (because you intend to move to a smaller place that won’t have the room to store it) can be a daunting task to tackle on your own. Perhaps the family will help, or perhaps you will hire professionals to clear out, clean, and then move the remaining contents of your home to a new property but in either case, you need to carefully think through all of the logistics and make a plan.
Your agent can help you decide if it is best to sell your property “as is” with you living in the space; if you need to declutter and what repairs may be needed or if it is best for you to sell the property empty. Based on their advice you can ascertain how long you will need to get your property ready for sale and how to find new accommodations.
3. Emotional & practical considerations – having been in your current house for a long time, you will have developed many thoughts, memories, and familiarities. Moving around the corner may be relatively straightforward, but moving to the other end of the island or even off the island can cause unexpected obstacles – will you still be able to see the family and friends regularly? How will this change your getting to church, getting groceries or going to appointments?
While Bermuda is a small island, with close knit families, we are finding more seniors moving off island for the cost savings, joining other family members relocating or finding more senior friendly communities. Remember, a house or condo is only block and mortar, people and quality of life is what it is really all about. Your agent can refer you to other qualified agents around the globe if needed.
