Downsizing on the property market is actually the opposite of climbing on the property ladder. Reducing the size of your home should come as a natural resolution when the house you own is too big for your necessities or too expensive for you.
However, the decision of changing homes can come very difficult, especially within people of a certain age. A recent study showed that most retirees that should downsize choose not to because of a series of reason, the most important being the emotional factor.
Reasons why downsizing is a difficult decision to make:
- emotional ties like memories created in their family home;
- not finding the right new property to move in;
- high moving costs;
- the high stamp duty that should be paid.
Despite this, advisers and consultants should be prepared and recommend solutions to those who face a hard time choosing to downsize. As the article on Property Reporter mentions, equity release is a solution and should be carefully offered to some of the clients.