Rightsizing is replacing upgrading and downsizing as the hottest trend in lifestyle change. Home buyers are trading big, high-maintenance homes for spacious high-end apartments.
Experts share the 5 essential things you need to consider when rightsizing your property.
- Your Spending Power
Having equity, and plenty of it, is a big advantage when rightsizing. You can unlock your equity by selling your family home and using the proceeds to purchase a new home in cash. Apartments are generally less expensive than houses, so at a comparable price point, you can afford a more luxurious address in the apartment market. Or, if you have a family home with rental appeal, you can refinance and keep it as an investment property. This will allow you to buy another property without using your savings. It gives you purchasing power without reducing the value of the asset and not losing the potential for future capital gains.
- Design and layout
You’re not swapping your home for a shoebox when rightsizing – you are searching for a space that is right for you. Rightsizers can include retirees, families and even young professionals. It can be diverse, so choosing the right floor is important. The common preference is two-to-three bedroom apartments with house-like sizes, particularly the kitchen, bathroom and living area, as well as a laundry and storage for their hobby and recreational belongings. The varying requirements of rightsizers are motivating developers to focus on flexibility and not on the “one-size-fits-all” approach.
- Lifestyle amenities
The exclusive perks on offer is one of the major drawcards of rightsizing. Unlike normal homes, apartments provide extra amenities such as pool decks, gyms, dining rooms and barbeque areas that can use for entertaining with friends. Some apartment complexes even have a rooftop bar, spa, outdoor cinema, playground, dog run, visitor parking, garden clubs and more. These facilities and amenities not only offer long-term appeal but are also important for creating a sense of community among residents.
According to research, rightsizers prefer to be near the city, in walkable suburbs, and in proximity of cafes and shopping. This makes inner-city suburbs attractive to rightsizers.
New builds commonly offer buyer incentives, including appliance upgrades, gift cards and even cash amounting to tens of thousands of dollars. You should allot time to explore the kinds of deals on offer.