If there is one thing that is certain in life, it’s that we human beings are never quite satisfied. We’re constantly looking at various ways to improve or enhance our lives.
This stretches into the realm of real estate, with the need to spruce up our home. In more extreme cases, especially when the discussion of upsizing or downsizing the abode comes up.
Although most of us are content with living in the home we worked hard to pay off over the years, sometimes we have to ask ourselves if the place we have right now is ideal for our needs.
That said, the process of selling a house and buying a home remains arduous and requires a fair bit of time and money, which is why many don’t even consider it. However, it remains a natural part of the home-buying cycle, which can be beneficial if thought through properly.
A Matter Of Space
One of the main considerations for homeowners is always space. For those starting a family, perhaps it’s time to consider moving into a larger, more comfortable home. However, for those whose kids are on the verge of leaving the nest, a bigger home might not be something you need right now or even in the near future.
Naturally, there are benefits to both. A smaller home will reduce the physical demands of maintenance, upkeep, and clutter. Upsizing, on the other hand, provides room to explore and enhance your living space. Have extra square footage? Use it to create a larger kitchen and dining area, space for a home office, a walk-in closet, or a home gym.
A Change Of Place
Uprooting after placing your roots down for a number of years may prove difficult, but there are a number of positives. Beyond a change of place and the luxury of choosing a more strategic location, upsizing and downsizing can prove beneficial.
For example, moving from a landed home to a condo or apartment could give way for a homeowner to get a property in a better location, not to mention with recreational facilities such as a swimming pool, gym, and security for peace of mind.
If it’s the other way around, a landed home has numerous potential, like an outdoor space for a garden and ample areas for friends and family or four-legged friends to roam and run around. A bigger unit also comes with more rooms to accommodate a growing family, which is great if there are plans to expand the household.
Cost And Opportunities
Whenever you’re moving up or down the property ladder, there are always costs involved. With proper planning, there are ways for homeowners to not just regroup but also maximise their real estate investment. The key to this is proper research and analysing the property market.
Chances are that that home, which you’ve owned for an extended period of time, would have appreciated somewhat. Opting to cash out could provide ample opportunity for a downpayment towards a bigger home. It could also allow owners to unlock equity on their current home to reinvest or stow away even after purchasing a smaller, more affordable unit. Or perhaps go on that long-awaited dream vacation on your bucket list.
That said, bear in mind there are also costs involved when uprooting to a new home. These include the Sales And Purchase Agreement (SPA), Stamp Duty, potentially higher mortgage repayments, movement costs, and higher maintenance fees.
Move Or Improve?
Regardless of upsizing or downsizing, the fact remains there will be work involved. Moving to a new neighbourhood comes with both opportunities and potential setbacks.
Leaving a familiar area alongside neighbours you have forged friendships with can be difficult. However, the prospect of making new friends and discovering new attractions can be an exciting experience.
If you’re torn between the two, perhaps rightsizing is the better option. Learning to maximise your space – through renovating, redesigning or reconfiguring your current layout through an extension – could be more conducive to maximise your current space.
An empty bedroom, for example, could be transformed into a home office. Need more room to cook? Perhaps it’s time to break down a wall or two to build an open kitchen.
Whether you’re looking to move up or down the property ladder or maximise your current home, remember: it’s all about fulfilling your needs.
| Upsizing | Downsizing |
| Bigger home, more space, and possibilities | Smaller home, easier to upkeep, less clutter |
| More expenditure, higher mortgage, increased home value | Free up equity, lower repayment, lower resale value |
| More opportunities to maximise space | Customised to your needs and lifestyle |
| Extended land and space for garden, and rooms to rent out for additional income | Smaller space for better management and maintenance, lower bills |
| More areas for living, entertaining, and recreation | Potential to move to a more strategic neighbourhood |
Think Hard, Think Smart
Whether upsizing or downsizing, the key takeaway is that you’re ultimately moving homes, and that can be both an overwhelming and taxing process. That’s not to say the move isn’t worth it, but it also has to be executed for the right reasons. Factor in the finances and costs involved, as well as the sacrifice of moving away from a community and friendships you’ve forged for many years.
Moving homes is never easy, but so long as your objectives are met and you’re thinking with both head and heart, rest assured you’re on the right track.