Did you know that almost one in four Australians aged between 55 and 64 moved to a smaller property in recent years?1
If you're like these Aussies and are thinking about downsizing in retirement, here are some things you might want to consider first:
- Why do you really want to sell? Is it to have a better lifestyle, pay off your home loan or have more cash?
- Why do you want to move? Is it to have a sea or a tree change?
- Have you researched what facilities are nearby, such as shops, public transport or hospitals?
- Do you have ties to your family home that would make it hard to move, such as memories of the kids growing up there?
- Do you have friends or family where you're moving to?
- And what about the ones you're leaving behind?
If you've considered these and still want to downsize, you could:
- use the equity in your home to fund your retirement, or
- buy a smaller property outright.
By downsizing you could release money to invest in:
Some things to consider
Before putting your home on the market, remember to get a clear idea of the implications of selling your home—financial and otherwise. Remember, a smaller place may still be expensive in comparison to when your bought your last home. It's also a good idea to check if your government entitlements will be affected, including your Age Pension.
Want to know more?
Alternatively, talk to your adviser about the prospect of downsizing and how it fits into your overall retirement plans. If you don't have an adviser, call us on 131 267 or go to our find an adviser tool.
1Australian Housing and Urban Research Institute, Downsizing amongst older Australians (2014), p79.
Important informationShow more
It’s important to consider your particular circumstances before deciding what’s right for you. This information hasn’t taken your circumstances into account.
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