Guide to Downsizing During Retirement

The kids have flown from the nest, you’re constantly cleaning and maintaining rooms that don’t get used, or your garden has become too large a chore to find enjoyment in anymore.

If these are things that have crossed your mind recently, maybe you have outgrown your 3 or 4 bedroom family home and it’s time for the next stage of your life.

Downsizing is a common option undertaken during the retirement years and an exercise that can be completed in more ways than one. To ensure you make the best choices for your future, there is much to understand about how downsizing may be the best option for you.

Downsizing is generally the reduction of the size of your home – usually by selling your existing property and moving to somewhere smaller. Although this commonly means liquidating some equity you have in existing property when you buy a cheaper home, this can also refer to someone who’s spending increases on a more luxurious home or one in a more expensive suburb. This may be the downsizer’s dream home.

Making the decision itself can be the most difficult part of this process as there may be many personal attachments to your current home or area. These must be considered during the move, but should not override any conclusions you come to.

Downsizing can give you financial breathing space, allow you to live closer to your children or grandchildren, or give you the freedom to travel or move around.

While making this decision remember that if you do decide to downsize you will be incurring the normal costs associated with buying and selling property including removalists, agents fees and stamp duty etc. Be certain to consult a financial adviser who can advise you on these and other financial aspects such as possible changes to your eligibility to earn a pension or your tax position.

Next comes selecting the type of place and area you would like to move to. For some, this will be easy as you may just be looking to move closer to family or into a retirement village with the support services you require. If this is not you, and you are considering a sea change, make sure that you consider making a list of all the features and requirements you would like to find in your new home or area and all the support services that an aging person requires and start from here. Remember, buying a new house is hard physically, emotionally and financially, so be wary of circumstance changes that may require you to move again immediately.

Once you have made your decision, next comes the planning and preparation. Begin by making a list of the absolute essentials that must be taken with you. Then, start either selling or giving away furniture and belongings that won’t be coming with you – and the sooner you do this, the better. Be aware of furniture that may not fit in your new dwelling, and if you are dedicated to not parting with a much-loved piece of furniture, maybe look for a place that will be able to facilitate it.

Overall, this experience should an exciting step, as it may be a path to financial or lifestyle freedom. Just be sure that you do it for the right reasons and are not rushed into any decisions you’re not sure about. Your retirement is all about you.

If you have enquiries, the Hicks Real Estate team is available to call today on: 07 3355 6845.