It may seem a little early, but I already know where I want to shrink.
I love where I live now and I don’t think I would want to leave. The village in Hampshire where my wife and I live is close to London, surrounded by hills and, just as importantly, our friends.
However, there is a possibility that our family home may not be right for us later in life, and when it comes to that point my downsizing plan would ideally be to settle into a flat converted from a stately home.
In my opinion, you get all the benefits of the property (gardens, room sizes, light) without the responsibility of maintenance.
And living in an apartment means being on one floor, having good accessibility, and also having a service team on hand if you encounter problems.
It won’t be cheap, but I think it will be worth it someday when the time is right for us.
How you downsize and where you downsize is a very personal decision, but you need to be strategic to make sure you make the most of your money.
Determining what you want from a space and a home is equally important, possibly even more important, because by the nature of downsizing you’re making your final move. You will not shrink twice.
Research by realtors Hamptons identified the top 100 locations to downsize based on data including travel time to the nearest city center and total crime reported.
The results include favorites such as Tunbridge Wells and Harrogate, but there are also less obvious ones such as Westminster.
But what stands out are the prices. These areas are in demand because they are close to social amenities and are preferred not only by retirees but also by young families.
One of the biggest traps people fall into when downsizing is paying a premium on their property for things they don’t need, such as access to schools or quick transport to London. These are desirable early in life, but it’s worth considering whether you really need them. If your answer is “no,” you can save yourself a lot of money.
In that spirit, I picked a few places from the list and took a look at nearby areas that offer many of the same benefits while leaving you with more money to enjoy your retirement.
Take Cheltenham for example, it’s not hard to see why it’s such a popular retirement destination.
Located in the Cotswolds, this hotel offers all the benefits of a vibrant royal town with plenty of activities along with green surroundings.
However, the average house price is well above the national average at £414,605. So how about Tewkesbury?
Less than half an hour north from Cheltenham, this medieval market town has a more attractive price point, with an average house price of £273,210.
It doesn’t have all the big city amenities like Cheltenham, but if I had my heart set on this place I’d definitely check it out.
In the South East, Chichester is a popular spot. It’s close to the coast, has a charming mix of old and new, and has easy routes into London. There is also a wide range of accommodation options available for retirement.
These new developments, targeting those who reduce their size, are very different from the worn-out image we associate with conformity in later life. They offer community and take the stress out of owning your own home and gardens, but with the privacy that comes with it.
Renting may not seem like an obvious choice at this stage of your life, but if done right, it can free you up to spend your money on other things, so it’s worth considering.
So is Fareham, a market town north-east of Portsmouth.
Not far from Chichester and located between the city centers of Portsmouth and Southampton, this area has a weekly local market as well as a modern high street.
It also has a much nicer price tag. The average house price in Chichester is £423,000, while Fareham’s is £351,025. That’s not a bad savings for a highway trip.
Head north and you’ll find similar savings.
Rutland in the East Midlands makes the list of the top 100 places to retire, and I can certainly see why the “county of taste” would appeal to downsizers.
You might consider Uppingham, a market town famous for its famous private school. The honey-coloured buildings help give the town its sought-after British charm, and it’s easy to imagine setting down roots here later in life. The average house price in the town is £392,294.
Alternatively, Kettering, about half an hour down the road, has an average house price of £245,442. With its good links to London and its recently refurbished high street, it can compete with suburban towns such as Surrey or Kent, but at a much lower cost.
While these are all good options and there is definitely value in doing your research, don’t be afraid to think outside the box.
My grandfather, Brian, whom I once met, lived a bus ride away from his family and traveled every day to do yard work and help around the house.
The family realized it made sense to provide him with a more permanent place to stay if needed, so they built a special outbuilding for him in the garden.
Initially, he used the annex from time to time, but later moved there when it made sense.
Downsizing an existing property and then using the money to expand can be a very efficient use of your money – I’ve always said it’s cheaper to build than to buy.
Whatever you decide to do, tackle it early and think as strategically as possible. It can be scary, but I think downsizing is an exciting opportunity.
It’s a win-win situation; Later in life you’ll get a property that better suits your needs and hopefully you’ll get a nice lump sum to go on and enjoy.
My final advice is this: Don’t be too late.
Whenever you decide to downsize and how you decide to do it, it will likely be stressful. This is how big changes usually happen; especially if it concerns property.
However, if you take the first step and take the time to find the right option for you, it is incredibly exciting.
Good luck and let me know how you get on.