Tips for Downsizing Upon Retirement

  • Posted 14 Oct
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Tips for Downsizing Upon Retirement

Many people consider selling their homes and moving to an apartment after retirement. They may want to avoid yard work and the hassles of maintaining an older home. They may want to downsize and live closer to amenities such as services and public transportation.

If you are considering downsizing but can’t quite see yourself in a small city apartment, check out this new trend among older home buyers.

 

An innovative downsizing solution

Many couples who are used to large homes just can’t picture themselves in a two-bedroom apartment. They need more space and want to have room for children and grandchildren to visit. A solution that is gaining popularity is to purchase multiple apartment units and remodel them into a single, larger space.

For instance, by combining two two-bedroom units, one couple was able to create a three-bedroom home with an expanded main living area. They were also able to carve out space for a large pantry, a luxury not often seen in apartment living.

In many modern buildings, the apartments are built for investors and not necessarily for long-term living. A small space may be good for a single person or a young couple saving for their first home, but it doesn’t always make sense for someone who is downsizing from a larger space.

Some developers are catching on to the downsizing trend and have started building three- and four-bedroom apartments. But two bedroom units will continue to be the norm because they are easier to rent out and the builder can cram more apartments into each building.

That hasn’t stopped many downsizers from creating larger combined units. An apartment complex in Leopold that was originally designed to have 25 units ended up with only 14 large apartments by the time all the units were sold and remodelling was complete.

 

Creating community

Having fewer units means fewer neighbours, and that can make residents feel more like they are part of a community. Seniors want to downsize but don’t want to sacrifice their quality of life. They still enjoy entertaining and having room for family pets and outdoor areas for gardening.

They also appreciate having strong relationships with neighbours. Having a larger living space makes apartment living feel less cramped and stressful, and residents appreciate a having more of a space buffer between their nearest neighbours.

 

Financing

If you are unable to purchase two or more apartments outright, there are financing options that can help. Some buyers take out multiple mortgages, one for each apartment, while others choose to pay cash for one unit and apply for a home loan on the second apartment.

Whether you are planning on downsizing to a smaller home or are interested in refinancing your current mortgage, Australian Credit and Finance can help. Contact our home loan experts today for the best advice and friendly customer service.

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