Whether you’re inching towards your ‘golden years’, an empty nester, or are just looking to simplify your life, the benefits of downsizing can be life-changing.
But making the decision to downsize can be an emotional time, particularly when you’re moving from a home with great emotional attachment and memories.
MARQ Licensed Agent Sam Taylor said the most important considerations for middle-age and older Australians was to identify the lifestyle they wanted in retirement before assessing their financial capacity and the most appropriate time to make the move.
“Whatever your circumstances are, if the kids have left home, if you feel like you can’t look after certain facets or aspects of your current property – or if it might be a challenge in a year or two to come – it’s probably the right time to start looking at downsizing because you might find yourself searching for 6 to 12 months to find the right place,” he said.
Here are some tips to help make downsizing a smooth transition.
Have a plan
Taking the time to carefully assess your priorities and thoroughly research suburbs and types of properties that suit your lifestyle will help you to make the right decision.
“First things first, you have to identify what lifestyle you want to live in retirement,” Sam said. “Is it apartment living? Is it still in suburbia but with an easier care block and newer house?
“It’s important to identify what lifestyle you want to live and whereabouts that location might be as well. Is it staying where you are? Is it moving interstate?”
Look at the big picture
The strength of your finances and assets will have a strong bearing on your future plans as you move into retirement.
It’s a good idea to seek out independent financial advice if you are a prospective downsizer. This includes confirming your budget and the type of property you would like to downsize to and crunching the numbers to ensure the move is viable.
“Arranging your finances will be a big consideration for any downsizer,” Sam said.
“Run through the numbers to get an understanding as to how much your place is worth and what that new lifestyle may cost you in terms of the property you want to buy.”
Having a home with a smaller footprint could also mean reduced utility bills and council rates, or consider sustainable options like solar power to help reduce your day-to-day operating expenses.
Futureproof your home choice
Opting for certain design features or a specific floorplan may help serve your needs now and into the future as you age.
For example, downsizers tend to look to single-level dwellings to help with any compromised mobility down the track. They also seek out good security, minimal maintenance and ‘lock and leave’ options in case they feel like taking off on holiday for an extended period.
Time it right
Deciding on the right time to downsize will be different for everyone.
“It sounds cliché but the best time to downsize is when it’s right for you,” Sam said.
“Often we have clients who are somewhat ‘future-proofing’. They’re two or three years away from actually needing to downsize, perhaps looking for a new place without stairs or reducing the size of their gardens, so they do it when they are fit and healthy before waiting for anything negative health-wise to happen.
“Consider a timeframe and how the whole process will work in terms of whether you sell your house first and then buy a new home? Do you buy something with a longer settlement and then sell your existing home.”