To upsize or downsize? Key considerations to make before your next property move

Making the right financial move to match your lifestyle needs

As the new year gets underway, homeowners may find themselves asking an important question – Does my current home still fit my lifestyle and financial goals? Whether you’re upsizing to accommodate a growing family or downsizing for a simpler, more cost-effective life, reassessing your homeownership journey is key to making informed decisions.

Major life changes such as marriage, children, evolving careers, or retirement often prompt homeowners to rethink their living spaces. A bigger property can offer more room for family, home schooling, and work-from-home flexibility, while downsizing could reduce mortgage repayment costs, simplify maintenance and potentially free up equity for other long-term investments.

Mfundo Mabaso, Product Head at FNB Home Structured Lending, says, “South Africa’s current interest rate cycle, coupled with a slightly improved economic outlook, is creating favourable opportunities for first-time buyers to enter the property market while also affording existing homeowners to reassess their life stage and consider a change in their homeownership journey.”

While scaling up for a bigger home often means higher mortgage repayments, increased maintenance, insurance, and other household related costs, scaling down on the other hand, can lower homeowner’s monthly expenses and unlock funds for travel, savings, or retirement planning. In today’s economic climate, with fluctuating interest rates and property market shifts, understanding your affordability and checking your credit profile continues to be largely important as it will impact the outcome of your next property move.

Downsizing isn’t just about saving money, but it can also support a greener lifestyle that allows homeowners to invest in alternative back-up electricity and water supply. This will help make the home more effective in terms of utilities and increase the overall property value. Upsizing may be ideal for multi-generational living or creating dedicated spaces for home schooling or remote work.

Mabaso shares some key questions that will help homeowners better navigate their property moves in 2026:

1. Lifestyle Needs:
- Do I need more space for family or work-from-home?
- Would a smaller home simplify and better suit my life?

2. Financial Readiness:
- Can I afford higher mortgage repayments and related household costs?
- Would downsizing free up funds for other goals?

3. Location & Convenience:
- Is my current area still ideal for my needs?
- Will my new home be close to where I work?
- Does the area have good schools, healthcare, shopping centres or malls, and other amenities?

4. Future Planning:
- What could the potential resale value be at a later stage?
- Does this decision to scale-up and downscale my property align with my long-term planning or goals?

“Whether you’re upsizing for a growing family or downsizing to simplify life, choosing a home is more than a property decision, it’s about how you want to live. Before making the leap, homeowners should lean on experienced advisors, both in finance and real estate, to make sure their next property delivers comfort today and financial security for tomorrow,” concludes Mabaso.