Tips for downsizing

— 5 min read

You love your home, especially since it’s the home you have seen your kids grow up in, every corner reminds you of a special memory. The thing is, the kids are gone now and it feels pretty empty at times. Why do you need that much space?

The Federal Government is encouraging “empty nesters” to downsize by offering significant superannuation incentives to do so.

For those wishing to capitalise on these changes, there are some tips to be aware of to make sure the big move ticks all boxes:
  • Start making a list of essential requirements:
  1. Where you would like to live in terms of proximity to family, friends, medical facilities and recreational interests
  2. Number of rooms needed to match your planned lifestyle
  3. Size of rooms to accommodate not only your favourite furniture items but the number of people who will fill those rooms
  4. Public transport and shopping proximity
  5. Outdoor living and garden preferences
  6. Pet suitability (where applicable) in terms of size and permissibility
  • Surf the recognised real estate portals to develop an idea of what will and won’t work for you e.g. style of accommodation (apartment, townhouse, etc), floor plan and location.
  • Get an objective opinion and ask family and friends what they believe would suit you best. Those looking from the outside sometimes have a better idea than those looking from within.
  • Know what your existing house is worth and how much you will have to pay for a suitable downsized replacement – if anything at all.
  • Buy and sell in the same market unless you are confident there is financial advantage in doing otherwise.
  • Don’t cut corners, buy or build quality…the rewards will follow.
  • Determine whether downsizing can be achieved on your existing land through subdivision and/or redevelopment. This option is not often thought of but can produce a win-win scenario.

Decisions to downsize are often placed in the “too hard” basket and will often not eventuate. Remember, the decision to downsize is rarely regretted by those who choose it and is often the beginning of a new lease on life. It can deliver a fresh lifestyle you never even dreamed of.

There are many factors to be considered in deciding on whether to downsize.

Consider getting help from someone with market knowledge, search capabilities and negotiating skills who will ensure you buy the right property at the right price.

A property advocate can assist you in determining the likely price you will receive for your existing home and the best strategy for achieving an excellent downsizing result. He can also act as your advocate in purchasing your new home. Get in touch with one here.

The content of this article was written by Shane Heffernan, Managing Director of BidPro. The information contained in it is general and is not intended to serve as advice. DPM Financial Services Group recommends you obtain advice concerning specific matters before making a decision.

Authors

Shane Heffernan – Managing Director, Bidpro Property Advocates