Downgrading. Downsizing.
Selling your condo for an HDB. Or moving from a landed property into an apartment.
Sounds like a sacrifice doesn't it?
In a highly competitive and fast paced society as Singapore, having the largest home, the highest per square foot (PSF), or living in a central location can sometimes feel like a flex over others. You might then wonder - how could reducing the size or value of my home be something positive?
Less can be more
Well if there's anything Marie Kondo has taught us (albeit a little extremely), is that not everything sparks joy to us. You could actually feel better with lesser.
Ever had the feeling of loneliness in a big empty house and thinking how it needs more people to fill the rooms? Empty, unused rooms simply mean more places to collect dust for you clean! It could also mean more opportunities for needless items bought simply to fill up the space, and more corners to look when you lose your keys. What would Marie Kondo say! Sometimes if your family composition or personal lifestyle no longer fit your current home, it might be time to consider right-sizing.
Don't ignore the little bits
A larger home generally also means higher recurring bills.
From having more aircon units to service, increased property taxes, or even higher maintenance fees - these little difference means losing out on a little savings each month. Think of it like paying for a membership but not actually utilising the perks - what a waste! Don't underestimate these small expenses, as it can accumulate to a significant amount over time. Even $200 each month can accumulate to over $2.4k in a year - enough to book you that plane ticket to that bucket list destination you've been dreaming of.
Change your environment, change your life
Shifting from a more upscale, central location to one further outskirts can also be a form of downgrade, as property prices reduce as you move away from the Core Central Region (CCR).
Living in the Downtown Core area can mean waking up to spectacular views of the Marina Bay some can only dream of. Yet the neighbourhood could also be a horror to navigate during major events and festivals like National Day or i Light Singapore. Not to mention the daily reminder of your office could end up to be less of a love affair but more of an unwanted stalker just lurking at the corner, reminding you of your unfinished work. Trading off the exclusive luxury living in a high-end condominium for a heartland neighbourhood could be the Eat, Pray, Love you need to find a slower pace of life. After all, there is still a certain laid-back charm of greeting your friendly neighbourhood kopi uncle and sipping a cup of Kopi-O in a local kopitiam.
Downgrade your home, upgrade your reward!
Lastly, a key reason to trade your higher value property for a lower priced one, is to unlock the value that you've been sitting on (or living in). While your home is an asset that can grow in value over time, it is simply un-materialised paper gains until you sell it.
When the right time comes, downgrading your home could mean that extra ka-ching to spend on yourself!
Been eyeing your dream watch, bag or car? Or perhaps a trip that has been on your bucket list for the longest of time? Cashing out on your property opens up an opportunity for you to pamper yourself with indulgence that you've been longing for. After all it is important to be kind to yourself, and find what brings you the greatest joy at this stage of your life!
So the next time you view downgrading or downsizing your home as a sacrifice and brush the idea aside, pause for a moment to think of these perks you could be overlooking!
Still, selling and buying a home is a major decision. Before rushing to sell your condo for an HDB, make sure you learn about the Top 5 Common Downgrader Mistakes so you don't fall for them!
Still unsure about whether you should downgrade, or how to start planning for it? Download our Downgrader's Checklist, or reach out to us for a chat!
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