Selling the family home is never easy, after all, it’s been the canvas for countless memories over the years. But with today’s cost of living and housing availability pressures, now might be the right time for you to consider investing in a smaller property.
According to the latest (2021) census data, more than 70 percent of properties in Australia have spare bedrooms – the equivalent of around 9 million rooms. AFR reports that in NSW alone, almost 1.5 million people live in a three- or four-bedroom house either on their own or with a partner. These figures suggest that even if it makes sense to, many retirees and empty nesters are resisting downsizing. They might have an emotional connection to their property, be wary of setting up a new life in a new home, or simply not feel the need to move. But there are some significant upsides to downsizing. Here are a few of the key drivers.
Is a pool pushing you into the deep end?
Pools are a lot of work and require considerable time, effort and money to maintain. There’s the chemicals for balancing the water, the electrical costs of running the pump, filter and heating, repairs, and of course the daily leaf scooping. Sure, all of this was easy to justify when the kids were diving in every other day, but if your children have flown the coop or the pool’s just not being used as much as it used to, you’ll quickly find that you’re splashing cash for no good reason.
A smaller property with a more modest, stress-free backyard will not only save you a lot of money and stress, but you’ll also reclaim your weekends!
Maintenance and cleaning
It goes without saying that the bigger the property, the more work it is. Even if they’re not being used, spare bedrooms and bathrooms still need cleaning, just like lawns need mowing and floors need mopping. And if you’ve got more space than you need, your home can quickly become a burden. Then there’s the fact that as properties age, they of course require upkeep. Having the carpets cleaned, fence replaced or kitchen redone can be a big and expensive task, but if you don’t stay on top of them, it could affect your property’s resale value.
Mobility matters
Larger homes are often multi-storey, come with stairs, long or steep driveways, and expansive layouts that are challenging for the elderly or those with mobility issues. Downsizing to a smaller, single-level home will boost your comfort and confidence and make moving around your own space that much easier. Even if you’re fit and well today, it might be worth thinking about the next decade or two and how your circumstances may change.
A super incentive
If the practical incentives for downsizing aren’t convincing enough, the financial ones may be. The government is making big steps to improve housing availability, and a key part of this is luring empty nesters towards smaller, more manageable properties, leaving larger homes for growing families. A key example is the government’s ‘downsizer’ incentive, which allows those selling their property (provided they’ve owned it for more than 10 years) to invest up to $300,000 per person – $600,000 per couple – into superannuation, tax-free. Initially available to those over 65, the qualifying age dropped to 55 in January this year, providing middle-aged Australians with ample time to plan for their golden years.
If you’d like further information on why and how to downsize, reach out to our team using the contact details below.
The information referred to in this article was obtained from publicly accessible sources from the ABS and ATO. The information provided in this blog post is for general guidance only and should not be taken as personal advice. We do not accept any liability for any errors or omissions.
Prudential Real Estate Campbelltown | (02) 4628 0033 | campbelltown@prudential.com.au
Prudential Real Estate Liverpool | (02) 9822 5999 | liverpool@prudential.com.au
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | macquariefields@prudential.com.au
Prudential Real Estate Narellan | (02) 4624 4400 | narellan@prudential.com.au
