Downsizing is a fantastic opportunity to consolidate your assets and minimise your living costs so that your retirement is carefree. But, how do you do it? Here are 4 essential steps to downsizing your home.

Why downsize?

Most downsizers are looking to maximise their lifestyle in a new area, while minimising their property maintenance. Moving into a newly built home, such as those located at Gilbey Lane, which guarantees low maintenance as all the appliances, fittings and architecture are brand new. Downsizing early sets you up for a low cost retirement; one that won’t see your super eaten up by a mortgage or other bills. Once you know you’re ready to downsize, here’s how to get started.

Step 1: Value your current home

Most of us assume that our family home will provide some much-needed funds to purchase our downsized property. But there’s a difference between assuming and knowing. The first step is properly valuing your home, so you have a realistic prospective budget for your future purchase.

Step 2: Set a budget

Now that you know how much your biggest asset is likely to sell for, you can figure out what kind of property you can afford. There are plenty of options from small houses to units and apartments. The budgeting stage should also cover the taxes, commissions and other fees that occur when you buy a property.

Step 3: Look for government incentives

There are multiple government concessions which may help with both your cost of living and your home buying potential. For example, in WA a 75% discount on stamp duty will be offered to anyone purchasing an off-the-plan apartment[1]. Throughout Australia, persons over 65 may allocate up to $300,000 from the sale of their family home into their super tax-free[2].

Step 4: Choose your ideal location

Once you’ve completed steps 1-3, you should have a strong understanding of your financial situation. With this in mind you can begin your research into areas you’d like to live. Read our previous blog on Perth’s best downsizing suburbs to get started.

New developments launched every year with Norm Carey

Whether you’re looking for a modern apartment or an inner city home; new developments are always on the horizon in Perth. Norm Carey has over 30 years’ experience in residential development and his team looks forward to matching you with a perfect new downsized home. To learn about our current projects, get in touch with the team.

[1] ABC: https://www.abc.net.au/news/2019-10-23/stamp-duty-cut-for-wa-apartment-buyers/11632164

[2] Money Smart: https://www.moneysmart.gov.au/superannuation-and-retirement/income-sources-in-retirement/selling-the-family-home