Downsizing, rightsizing, futureproofing – call it what you will, it’s one of the biggest property decisions that homeowners can face. After decades in a family home, the thought of selling up and moving to something smaller can feel both liberating and daunting.
Rena O’Kelly, an estate agent with Sherry FitzGerald in Foxrock, has worked with many downsizers. Here, she shares the key advantages – and the pitfalls – of making the move.
Pros
Leave the maintenance behind
For most downsizers, the size of a home, and the upkeep that comes with it, is the biggest factor driving the decision to move.
“It has to do with overall maintenance, particularly garden work,” says O’Kelly.
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After 30 or 40 years in the same home, many owners are facing higher heating bills and outdated insulation.
“We’ve seen a huge change in energy efficiency since these houses were built. The owners are not at a stage where they have an appetite to retrofit and bring up their energy rating.”
Money matters
After a lifetime of mortgage repayments, many homeowners find themselves sitting on a significant financial asset.
“Some people at this stage of life have built up huge equity in their home and they want to release it to supplement a pension,” says O’Kelly.
“A lot of people lost money coming through the crash on stocks and they have never recovered, so they need the equity to act as their pension.”
But caution is key. The shortage of housing supply means the dream downsizer’s home may cost more than expected. “You really need to research what’s out there to ensure your budget will match your expectations,” she warns.
“A bungalow is a really good option when downsizing,” she adds. “But bungalows don’t only suit downsizers, they also suit families, so there can be huge demand for these properties, which in turn means they’re achieving very strong prices.”
Her advice is to start viewing potential properties early. “Go out there and look at suitable properties and see what’s happening in the market. When you start to look around, it allows you to get excited about the next stage, and you need to be excited.”
Family ties
Family remains a powerful motivator. As children settle farther afield, parents often decide to follow. “When kids move farther away, often the parents want to be closer, so they decide to sell up and follow the kids,” says O’Kelly. Downsizing provides the flexibility to relocate closer to family support networks – or grandchildren – without the burden of maintaining a large home.
Lower day-to-day costs
For many, the financial benefits extend beyond releasing equity. A smaller, newer, more energy-efficient home can dramatically reduce monthly outgoings.
“You could be going from an old draughty house to an A-rated property and won’t know yourself in terms of comfort and bills,” says O’Kelly.
Maintenance costs also shrink. “The maintenance of a smaller property is so much more manageable physically and financially. Just think, if you’re halving the size of your living space, painting jobs, etc, will be half the price.”
Home and away
While not everyone dreams of retiring abroad, many downsizers are open to the idea of spending part of the year elsewhere. “Not as many people as you’d imagine move abroad when they retire,” O’Kelly explains.
“Many, however, invest in a property in the likes of Spain, Portugal or Florida and spend their time between there and Ireland.”
For these buyers, the idea of a lock-up-and-leave apartment is particularly appealing. “They don’t need the space all year round and like the idea of being able to lock and leave when they head away.”
A helping hand
For some, downsizing offers a chance to lend a hand to the next generation.
“This can also be an opportunity to release equity to help children to buy their own homes and take the next step,” O’Kelly notes.
In most of the cases she sees, parents are financially secure enough that this generosity doesn’t compromise their own move.
Cons
Finding the right property
Despite the clear advantages, finding the ideal downsizer’s home is far from simple.
Supply remains a major issue, particularly for well-located, low-maintenance homes with good energy ratings.
Many would prefer to stay within the same area, close to familiar shops, services and friends, but suitable options can be scarce.
“Of all the houses we sell in Sherry FitzGerald, 10 per cent are from downsizers,” O’Kelly says. “That should be double but it’s not because I feel there aren’t sufficient properties for this cohort to move to.”
Leaving the trophy home
In south Dublin, O’Kelly says many clients are selling what she calls “trophy homes”.
These properties can be valued at €2 million or €3 million or more, and have become central to their owners’ identities.
“It can be emotional and psychological to leave a house like this,” says O’Kelly.
Her advice? Don’t leave it too late.
“These people really need to take their time and research what’s out there to become comfortable with the move. It’s advised to do this earlier rather than later in life when you still have the energy to get excited about a new project.”
Hard work
The physical and emotional work involved in clearing out decades of belongings can’t be underestimated.
“The move can seem overwhelming,” O’Kelly acknowledges.
“This is where I advise people to use experts to make their lives easier – cleaners, decluttering pros, packers – take the help where you can. Don’t try to control everything yourself.”
Furniture and fittings
Furnishings often pose a dilemma.
“Everyone likes to take a bit of their past with them, but don’t be tempted to dismiss certain properties because your furniture won’t fit,” O’Kelly advises.
“I know of one person who sold absolutely everything when she was making this move, and bought completely new furniture for her new life.”
She also suggests being open to selling some items to the new buyers.
“When you’re selling your house, if the purchasers want to buy pieces, sell it to them. Those pieces will never be worth more than they are in situ. It is a great opportunity to get rid of a few things.”
Storage
Downsizing means embracing a simpler way of living.
“When you live in a big house you can get used to the luxury of space,” says O’Kelly.
“You used to keep four coats, but now you’ll only have space for two.”
Learning to be selective and realistic is key to avoiding clutter in the new home.
Think of the kids
Parents often struggle to let go of the idea that their house will remain the place for family occasions and grandchildren.
“This is where in apartment developments it’s great when they have a park area as it allows downsizers to get over that speed bump knowing the grandkids can still get out and play.”
Leaving the area
“Staying in the area isn’t always possible,” O’Kelly admits.
“It can be hard to think about leaving your neighbours and friends.”
Most downsizers focus their search within a four- or five-mile radius, but when that fails, she encourages an open mind.
“I’ve seen people turn this around and use this as an opportunity to move to the coast. Leaving an area they’ve been rooted to is cancelled out by having a retirement by the sea.”
Closing the deal
Logistics can add another layer of stress.
“It’s not always possible to have a smooth process where you move from one property to the other,” O’Kelly notes.
Bridging gaps between sale and purchase may mean renting temporarily, which she encourages clients to view positively.
“Use this as an opportunity to go for a second clear-out and get rid of more belongings so you don’t bring too much to your new home. And maybe book yourself a little holiday.”
