Latest figures from the property market show that more and more people are looking to downsize their property every year. According to the Lloyds TSB research report, about half of the potential home buyers are looking forward to downsizing their property within a span of 3 years, and at the same time only one fifth of the people are only thinking about moving into a larger property.
Retirement is one of the main factors which forces people to consider downsizing to smaller homes. But the latest reports suggest that there are many other reasons for this in times of economic crises like now.
When 59% of people are considering downsizing to match their circumstances, one third of the total potential buyers prefer a smaller home to reduce their utility bills. Another one third is downsizing the home, in order to create better retirement plans. One fifth of the populace is looking forward for a downsizing to relax the burden of equities in the property.
One fifth of those who are planning to downsize are making their moves faster than expected, referring to financial crises as the main issue.
The report also specified that two third of the property owners who are planning to downsize have been living in the specific home for more than a decade and one fifth have been using the home for a period between six and ten years. Only one tenth of the people have lived in their home for a span lesser than five years.
Stephen Noakes of Lloyds TSB stated: “Downsizers are now playing a key role in the housing market and as the study shows we are starting to see homeowners on different stages of the property ladder considering it as a sensible option as more and more families are looking at ways to save money.”
Noakes also suggest that whatever be the reason for downsizing, it is better to seek professional advice before you finalise on the decision.
Photo courtesy: International Real Estate Listings