Why downsizing might make sense for you
With the property market booming, is now the right time to make the move to a smaller home?
As the kids move out of home, personal circumstances change or retirement beckons, downsizing becomes a genuine consideration for many homeowners. In fact, according to downsizing specialists Homesuite, more than 50 per cent of Australians are aged 55-plus are actively considering downsizing.
And there’s little doubt that economic, social and cultural factors post the peak of the COVID-19 pandemic in Victoria are making the idea of downsizing even more attractive.
In the last year alone, Melbourne’s median house prices has risen 16.2 per cent to more than $1 million, with sellers in control thanks to low interest rates and demand from buyers looking for bigger homes.
In addition, the federal government is also making downsizing more attractive with eligible homeowners able to contribute up to $600,000 per couple to superannuation from the sale of a home.
Despite clear financial benefits, before embarking on the journey to downsize it’s worth carefully considering the benefits and challenges of the move, says David Ginnane CEO at Homesuite.
“Downsizing is something that most of us think about some point in our lives, and even more so now given buoyant property prices, government incentives and the toll of the COVID-19 pandemic.”
“We’re seeing many Victorians opting to downsize to make a tree or sea change, take advantage of working from home flexibility and improve their lifestyles,” he adds.
To make an informed decision about downsizing, here are some factors you need to consider.