The chickens have flown the coop. You are at a point in your life where you have more room around you than you can handle. The nest is feeling a lot larger than you once remember.
Uhuh, that is right - you are ready to downsize.
Downsizing your home is a big step and one that requires a lot of thought and planning. A four-bedroom home and garden are great when raising a family but now, you absolutely dread the cleaning and maintenance. Add health into the mix and suddenly a smaller unit or even a retirement village looks like an attractive option.
It is important to note that there are a lot of financial considerations to be looked at when making this lifechanging step. For example, did you know that the government has a ‘downsizer’ incentive where clients are able to make contributions into their super? Do you have enough dollars to last through retirement?
Don’t worry, your pals at Visia Financial Services we have got a list of tips for navigating this life stage.
The sooner the better – start thinking about downsizing early
Downsizing isn’t just a quick move into something that costs less than you are used to. Don’t fall prey to this mindset. Without proper planning, you might walk straight into the lion’s den.
Firstly, why are you downsizing? Are you heading towards retirement? Have the kids vacated the nest and you don’t need so much room? Have a serious consideration of what your objective is and factor all the elements around that.
Start thinking about the process as soon as it starts flickering in your mind. During this phase, begin decluttering things in your home and working in line with your budget in preparation for ‘the move’.
Assess your needs and find a home that meets that
Depending on who you are, your needs are going to be different. Are you a retiree who would like to live in an apartment? If so, you might need an apartment that is senior-citizen friendly. Consider your situation carefully and how your future – short and long term – are going to be looking. Ensure you are realistic with your situation and include this in the planning step.
Downsizing into Super
Something to explore for retirees. The government recently announced that they will help retirees fund up to $300,000 to their personal superannuation fund from selling their family home. Do you fit under this category?
It is time to consult a financial adviser
Being aware of the costs associated with downsizing can be an enormous feat. Yep, it can seem like a lot and the realm of downsizing can feel a tad complicated. It is advisable to seek the help of a financial adviser in Perth who has your best interest from day one. We here at Visia Financial Services are professionals who will be able to help you sort out every aspect of the downsizing process. Start the conversation today.
Kora Drage is an Authorised Representative of Financial Wisdom Limited ABN 70 006 646 108, AFSL 231138. The information contained in this article may contain general advice. It does not take into account your financial circumstances and objectives. You should consider talking to a financial adviser and read the relevant Product Disclosure Statement (PDS) before making a financial decision. Any views and opinions provided in this article may not reflect the views and opinions of Financial Wisdom Limited.