For many people, downsizing their home can be the first step to a new lifestyle. Benefits can include less maintenance, lower running costs and topping up your retirement savings. For some, however, downsizing may not necessarily put money in your pocket, in fact, you may end up paying more!
So how do you make downsizing work for you? Here are some of the important things to consider when making this life-changing adjustment;
- Does downsizing fit in with your retirement and lifestyle goals? Make sure you do your research to ensure the location and condition of a potential property support your retirement objectives and allow you to live the lifestyle you want. For example, if one of your lifestyle goals is to travel more and spend more time with family then perhaps finding a relatively new build with a low maintenance garden is the direction you need to go. This will reduce your running costs and the amount of time you need to spend working on your home.
- What impact will the potential profit have on you financially? Will any profit from downsizing affect any government pension payments you are currently receiving? Your cash flow is very important and whilst you may increase your overall retirement savings, you also need to maintain a positive cash flow to fund your lifestyle. If you are thinking of downsizing, give us a call first so you are fully informed on the impact to your lifestyle.
- Are you ready for the change? It’s so important that downsizing is done in your own time and when you feel you’re ready. Selling your family home is a big step and one that shouldn’t be rushed. Consider the emotional impact it may have on you.
The key to downsizing successfully is to do your homework first. If you decide to go ahead, do it in your own time and seek appropriate advice before, during and after the process. Talking to a financial planner will help give you clarity on all of the financial implications of selling your home.
For more information or to book a free initial consultation, call us on 1300 300 844 or email firstname.lastname@example.org.