If you’re approaching retirement age you might be starting to think about investments, superannuation, tax minimisation, pension eligibility and more.
One of the biggest decisions for many retirees is whether to stay in the family home or downsize to smaller or ‘retiree’ accommodation.
Everyone is downsizing
Downsizing is on the increase and as a result, there has been increased demand for villas, townhouses and units, and in some locations driving the prices up, so it’s important to be aware of this.
Plan for retirement now
In the years prior to retirement many homeowners find themselves with substantial equity in the family home which can be used to buy a retirement property now rather than later. So in the years leading up to your retirement the rental income and possible tax benefits will help pay for your property.
With the potential benefit of positive movement in the housing market – and now having two properties – this may place you in a good position to increase your retirement nest egg if you choose to sell your family home when you downsize. Depending on your situation you may even be able to keep the family home as an investment.
Benefits of downsizing
One of the biggest decisions for many retirees is whether to stay in the family home or downsize to smaller or ‘retiree’ accommodation.
Do your homework
Selling your family home is a big step in life so make sure you’ve considered your options, your financial position and all implications of selling your house before putting it on the market.
Contact us today to start planning your retirement. We would be happy to chat to you about how selling your house will affect your assets and income tests, your pension and more.
To read more on retirement and downsizing view our article Should We Stay Or Should We Go.