As children move out of home and retirement comes into focus, downsizing your home can be a smart move. Here’s four good reasons why…
1. Upsize your retirement savings
Moving from your family home into a smaller property can help to free up funds and boost your retirement savings. You may even be able to make a non-concessional contribution to your super. Reducing the size of your property can help to free up your equity in the family home, as can moving to a regional area with excellent facilities.
As proximity to work and schools becomes less important, moving further out of the city can support a healthy lifestyle as well as help to reduce the cost of your new home and upsize your retirement savings. Making sure your new home is close to good facilities including medical care and transport will ensure
Living in a smaller, more low-maintenance property can also help save on on-going costs like bills and associated costs with home and garden maintenance. Building a brand new home can also help reduce your bills, as energy efficiency and less maintenance will help keep the costs down. These on-going savings can all help to fund a more active retirement.
For more information on the financial implications of downsizing your family home– you can visit the ASIC website https://www.moneysmart.gov.au/superannuation-and-retirement/income-sources-in-retirement/selling-the-family-home .
2. Enjoy the simple life
Downsizing your home also means downsizing the clutter, your belongings and also your debt. This means greater peace of mind, fewer chores, and more time to spend doing the things you love!
Less maintenance around a smaller home and garden means you’ll have more time to prioritise your health and your hobbies. Building a home in a development that features parks, walking trails and outdoor space means you can enjoy the outdoors without having to maintain your own large backyard. Some new developments like Aston Hills in Mount Barker even offer direct pedestrian access to the local golf course and clubhouse – perfect for an active retirement.
A smaller property also enables you to enjoy an easier lock-up-and-go lifestyle, and enjoy traveling without the garden being overgrown on your return.
In short – downsizing your home can give you a new lease on life.
3. Your home, the way you want it…
Building your own home for retirement means that you can design a smaller house to suit your needs. As families grow and change, and children move out, your lifestyle will change. You may need a smaller study, a small home gym instead of a guest room or a bigger wine fridge – the choice is yours!
When you design your new home you can also include security features, a larger, secure letterbox and a low maintenance garden or decking area to make your new lock-up-and-go lifestyle even easier.
4. Downsize, in a location you love
With an increase in the variety of allotment sizes available in new developments, these days you can downsize to a home you love without compromising on the location.
By building in a new development you can have the home you want and still be part of a bustling new community, be surrounded by brand new facilities and still be close to friends and family. Gone are the days when downsizing meant moving to a retirement village, an apartment or strata block – with today’s modern homes you can still enjoy all the benefits of living in your own home while still reducing your costs and space.
Selling the family home is not an easy or simple decision. Before you do anything, consult a financial adviser on the tax and social security implications, and speak to family and friends.