Talking Property

Timing is crucial to solving the downsizing dilemma, says Isabel Morton

SORTING, CLEARING, storing, selling, 45 years of married life. Where do you begin? Can you even bear the thought? Who's idea was it anyway to downsize?

Downsizing is not just a matter of selling your family home and replacing it with another more suited to arthritis, rheumatism and other complaints of old age, but also choosing the right time to do it and with the least possible stress.

The thought of moving house, even when you are young and fit, is daunting enough for most people. Even contemplating the idea of it, when you are of a certain age and no longer full of vim and vigour, may be too much. "Let them carry me out of here in a box" many say, and it's hard to blame them.

There comes a point, when the large family home you've enjoyed for many years, becomes more of a burden than a pleasure. Your home is full of good memories of family events, but the memories are quickly replaced by the demands of bricks and mortar, which scream for attention. Having renovated and decorated regularly over the years, the idea of having to do it all, yet again, lacks appeal.

Unfortunately, you cannot just decide in advance, that you will downsize at a certain age, because when you reach the appointed age, you may not feel in the least bit inclined to pack up and move.

On the other hand, you don't want to leave it so late that you are neither mentally or physically capable of moving at all. The clever ones buy a suitable property when they are in their forties or early fifties, and rent it out, until they need it themselves.

However, the truth is that most of us feel we will stay forever young and, when we suddenly find ourselves using only a few rooms in our large family homes, we wonder how it all happened so quickly. One minute the house was bursting at the seams and the next you find yourself dusting unused rooms.

If it has all become too much for you of late, and you are in a state of depression worrying that your home will not sell in the current market, and wondering where you will end up living, don't despair.

All property prices have dropped by 20 per cent since the heady days of early spring 2006. However, they had been increasing at a phenomenal rate for about seven years prior to that. This recent drop in property prices should not affect downsizers, who in the main have owned their property for at least 10 years, and therefore have benefited greatly from the overall increase in values.

And where you will not get the over-inflated prices which were achieved in early spring 2006 (just before we saw sense and stopped paying them), you will get a very acceptable 2005 price for your home. And you in turn will only have to pay a 2005 price for your downsizer home.

Start putting your trading down plan into action. Have at least three different local estate agents view your home and give you a valuation. Also give them a clear brief on the type of property you would be interested in moving to.

Everyone's financial circumstances differ, but ideally aim to spend no more than 50 per cent of the selling price of your family house on your trade down. If you sell for €1 million, then spend no more than €500,000. However, if you sell for €3.5 million you may not need to spend anything near 50 per cent of that figure (€1.75 million). Don't buy until you have sold your own.

Remember that you will still have to pay stamp duty to the Government, for the pleasure of moving house. Rates differ depending on the value of the property. Other nasty expenses include solicitors, furniture removal, storage, estate agents fees, and advertising.

Many people hate the idea of neighbours, friends and total strangers snooping around their homes during the open viewings, particularly if the property is in need of renovation or decoration.

A spend of up to 1 per cent of the value of your home, in order to prepare it for the market, is advisable. Spending €15,000 may seem a lot but, when it ensures you sell your home for €1.5 million, then it is obviously well worthwhile.

Most homes just need to be decluttered, depersonalised and possibly given a fresh coat of paint.

Don't be tempted to renovate or decorate yourself, as you may spend money in the wrong areas, which may not add value to your home.

Accept help from family and friends, but stay in charge yourself, and remember to enjoy the process, it heralds the start of a new stage of your life.