Upsizing, downsizing and rightsizing: Finding the best fit
We’ve all heard about downsizing and upsizing, but what about rightsizing? ‘Rightsizing’ is used for when you find the right fit for you. In property terms, this means a property that best suits your circumstances and lifestyle.
What is rightsizing?
While upsizing and downsizing are largely focussed on the size and financial commitment of the purchase, rightsizing is instead about finding the right property for your circumstances. This may be a similar house in a different suburb, a more updated property, or moving from a double storey to single storey house.
Unlike downsizing, which has you choosing a smaller property, or conversely upsizing which is where you buy a larger property, rightsizing is open to interpretation for your needs.
Perhaps your kids no longer need that separate playroom but desire more outdoor space, or you want the same number of rooms but a smaller footprint, so you opt for an apartment over a house.
How to know if it’s time to rightsize
Knowing if and when it is time to rightsize should be fairly straightforward and may already be obvious.
Does your current property feel like it is the right fit? Perhaps the layout no longer suits, too far away from work or family, or the property may be becoming too hard to maintain. This may have always been the case and now is the time to make the change, or your situation has changed.
Being aware of what is happening in the property market and keeping an eye on trends will help you know when it’s a good time to sell and buy. A reputable real estate agent can help you navigate this. Attending auctions and viewing other properties can also help you decide if there is a better fit within reach and motivate you to rightsize.
Conversely, it can also serve to show that you are happy with your home, with some alternations, whether that be renovations, restyling or decluttering. You might realise that the room you no longer use could still be handy but fit for another purpose, for instance.
How to purchase the perfect rightsized home
To find the right fit for you, it’s important to get clear on what it is you are after. Think about things such as the location, the size, the layout, and the lifestyle that comes with the property and reflect on your immediate and near future needs.
Future needs are important, because a major purchase such as property is unlikely to be done regularly! So, while you are rightsizing for the now, it’s smart to think about what is probable for the years to come. Perhaps you are managing a health condition that could make it difficult to clean or move around a multi storey home, or your kids are grown up and soon will move out.
Just as with downsizing, be realistic if you do find a smaller property – you may need to get rid of things as they’re unlikely to all fit in a tighter layout, especially if storage is at a premium.
As well as knowing your non-negotiables and ‘good to haves’, you need to understand your purchasing power. Finding the ‘right’ home may require additional investment, so have a clear understanding of your current properties value, your budget and ability to service a loan moving forward is critical.
You may also be eligible for grants or offers (buyer incentives) should you be interested in a new build, so do your research to see what you can save – this can also help you decide as to whether now is the right time to make this change.
Rightsizing will require careful consideration and assistance from a broker to see if this is the right move for you to make at this current time.
