Home is where the heart is.
Life is dynamic, ever-changing and full of surprises. As you grow up you find that your home needs to adapt and change to suit your needs. As a young couple starting out maybe you only needed a small place with a couple of bedrooms and that was perfect for you.
As you started to think about family your needs changed. You needed a bit of grass for the kids to play on, you needed to consider a 3 bedroom house rather than 2 and the amount of bathrooms may have suddenly mattered more.
When the kids grow-up and begin to spread their wings you may have found that the eldest's room could suddenly become a hobby room, or office. The lawn might now be better suited to a dog than a gaggle of children enjoying back yard cricket. But as the rooms become slightly emptier, and you begin to feel like you're rattling around a little you might begin to wonder if you still need all that space?
Downsizing your home doesn't necessarily mean minimal living. It also doesn't have to mean suddenly living in a caravan! But it can mean a new level of freedom that you can enjoy as you look towards retirement.
Family homes are in high demand and if your is in an area that has seen house price rises then you may be sitting on a tidy investment that could finally be realised.
Selling the family home and downsizing could release a lot of equity that can be used to plan for retirement, invested to increase your children's inheritance or simply enjoyed by taking a holiday of a lifetime. The options are almost endless and the real question is whether it's better to keep the funds tied up in your family home, or released to use on anything you like.
Some of the uses for newly-released equity include:
- Funding a child's house deposit
- Creating available cash for weddings etc
- Investing for retirement
- Buying a dream toy (car/boat/holiday bach)
- Travel the world
- Spare cash for unforeseen medical bills
- Funding care for elderly parent
However you choose to spend your newly acquired funds your downsized home doesn't need to be a step backwards.
A sustainable and eco-friendly home can all be had for as little as $350,000, including GST. The reason why such a home is so affordable lies in the building process.
Prefabricated homes are built within a factory, but this doesn't mean they're mass-produced. Instead, building a home indoors, means there are minimal weather delays and materials can be very tightly controlled, thus reducing wastage and keeping budgets under tight control.
And even though your new prefab home may arrive on the back of a massive truck it's not a temporary transportable home. A transportable home is often easy to remove at a later date but a prefabricated home is as permanent as one built from the ground up in its final resting place.
Find a prefabricated home that is low cost to build, low cost to maintain and has been built to reduce heating and cooling costs and all that released equity will last a lot longer too.
One last thing to consider, when downsizing, is to find a home design that offers flexibility. After all, you don't quite know when the family will pitch up for some good home cooked meals.