The Upside of Downsizing…

The important things you should know when considering downsizing!

The thought of exchanging the maintenance of a larger home for a hassle-free future full of travel, friends and newfound freedom is a common aspirant for downsizers on the move.

Given the ideal replacement residence, more than half of Australians aged over 55 are open to downsizing opportunities, according to Australian Housing and Urban Research and similar sources. 

Once the reality of the children growing up and leaving the family home starts to wear off, there are many compelling reasons favouring the move to a smaller abode.

The average Australian homeowner buys three to four properties in their lifetime. Traditionally, they trade up from their first home to a more substantial residence, often upgrade and then downsize upon retirement.

There are a number of important things you should know when considering downsizing. At One Agency Orange, we can guide you through the process. Read on for our expert advice on downsizing.

There are considerable financial incentives available for downsizers!

Incentives are in place to maintain this market cycle, with downsizing provisions enabling people over the age of 65 to sell their home and put an extra $300,000 in super.

Firstly, factor in selling and buying costs (including moving) and talk to your financial advisor about how it could affect age-pension entitlements by boosting your assets outside the home.

It’s important to have a positive mindset & a practical plan of action!

More than anything, downsizing requires a shift in mindset. The need to separate your wants from your needs and fully embrace a new phase is as essential as a practical plan of action to make it all happen.

Decluttering is an essential component of the downsizing transition and should be a key part of your plan of action. Review your belongings on a room-by-room basis and decide what to keep, discard, donate or sell.

Carefully consider a realistic budget for your downsize!

Just like saving for your first home, it’s essential to maintain a carefully considered budget. Plan your new financial and life goals wisely. Setting up a new place can also be more expensive than you think.

Embrace the possibilities of the new space!

Given the reduced space at your planned new address, measure your furniture to ensure it fits the space and try to use one statement piece in each room.

It’s also vital to make the most of storage where you find it. There’s no shortage of potential solutions under beds, in cupboards and wardrobes.

Other great tips include mounting your TV on the wall, making the most of Wi-Fi technology, and utilising multi-purpose furnishings where you can.

Need some more information or expert advice?

Once you’ve settled into your new, streamlined space, embracing the downsizing adventure will be a joy as you embark on the next phase of your life.

Give One Agency Orange a call to explore downsizing investment options today! Contact our office on 02 6362 9560 to arrange a time.

Remember, this article does not constitute financial or legal advice. Please consult your professional financial and legal advisors before making any decisions for yourself.