Myth 3: Apartment living is restrictive & Unappealing

The idea that apartment living is restrictive and unappealing is a common misconception among people who live in larger properties.

The good news is that downsizing often gives you a healthy budget to explore purchasing a relatively modern townhouse or apartment. These homes offer balconies, inbuilt storage, modern kitchens, secure parking and even resort-style facilities like gyms and swimming pools. Contemporary apartments and retirement village units are designed to give you a sense of security and privacy; you’ll usually have the option to interact with others as much or as little as you want.

If you really don’t like the idea of an apartment, your other option is to ‘rightsize’ and explore options such as purchasing a block with two homes on it; live in one and lease out the other, or simply buy a smaller home that is more suitable for your lifestyle needs

Myth 4: Downsizing won't save me any money

People talk about how selling is an expense and you need to commit funds to stamp duty when you buy, but it’s important to take a more long-term view. Add up what you’re spending on utilities, maintenance, transport, insurance and things like council rates where you are. A strategic move to downsize can drastically reduce these costs.

What’s more, downsizing when you have paid off your mortgage may put you in a position to buy and lease out a rental property, giving you a source of income. There is also the potential to downsize and contribute a significant amount of funds to your superannuation without being penalised. Speak with your real estate agent, financial planner and accountant to break down the numbers rather than simply looking at the expense of a move.

Myth 5: I won't have room for anything

Yes, a smaller place can mean less room for ‘stuff,’ but this doesn’t have to be a bad thing. When you downsize, you’re forced to declutter and figure out which belongings are most important to you. It’s an opportunity to get rid of unnecessary items, and you may be surprised by what you can let go of once you start the process.

You will still have room for the things you treasure and you will probably find you are able to use and enjoy them more once you have reduced other clutter.

Start with a clear plan (& a budget) 

Your renovation strategy will differ depending on whether you plan to resell the property or live in it. If you intend to resell, your focus will be on improvements that increase the property’s market value and appeal to a broad audience. This might include modernising the kitchen and bathrooms, enhancing curb appeal and adding built-in storage.

Conversely, if you plan to live in the home after your project is complete, you’ll tailor the renovations to your personal lifestyle needs. While it’s essential to keep future resale value in mind, you have more flexibility to personalise the space. Regardless of your plans, having a clear vision will guide your renovation efforts and budget allocation.

Budgeting accurately for your renovations is crucial. Ensure you have the funds to complete the necessary work without compromising your financial stability. Consider all costs, including building design, council approval, materials, labour, and a contingency for unexpected expenses, and talk to your lender so you know you’ll be able to access the cash you need.

Location, Location, Location

The adage “location is everything” holds true, especially for fixer-uppers. Even the most beautifully renovated home can struggle tos ell or appreciate in value if it’s in a less desirable area.

Look for properties in good suburbs with strong growth potential, access to amenities, good schools, and transport links. Proximity to these factors not only enhances the value of the property but also makes it more appealing to future buyers if you decide to resell 

Cosmetic VS Structural improvements 

One of the most critical aspects to evaluate is whether the necessary improvements are mainly cosmetic or structural. Cosmetic issues such as out dated fixtures, old paint and worn flooring are relatively inexpensive and easy to sort out and you can even get away with a DIY job. On the other hand, structural problems can be costly and time-consuming to address, and fixing them doesn’t really add to the visual appeal of the property.

Never exchange a contract without checking for signs of serious issues, such as cracks in the foundation, sagging roof, rising damp or problems with the plumbing and electrical systems. It’s recommended that you invest in a property inspection from a qualified building and pest inspector, so you can have a written list of the scope of the work required. Once you have this report, you can use it to get quotes on improvement costs from a builder and negotiate with the seller.

Even things like a pool fence that’s not up to code can add to the cost of your home improvements. When you’re new to renovating it’s easy to overlook things like this so having an inspection should be a non-negotiable