Empty nesters rejoice! Happy days are here. The kids have all left home, and you’ve now got a real opportunity to take stock and decide if you want to rattle around in your large family home or find something smaller and more manageable.
Downsizing, or ‘rightsizing’ as it’s often termed, is gaining popularity with older South Australian empty nesters looking to capitalise on higher property prices. Many consider options like sea or tree changes and even inner-city apartment living. Some are also looking at land lease communities.
On top of the new-found freedom of not having to worry about kids in the house anymore, downsizers are also being encouraged by the announcement of downsizer super contributions. From July 1 this year, Australians aged 60+ (down from 65) can boost their super contributions by up to $300,000 each ($600,000 for couples) from the sale proceeds of a principal residence they’ve owned for 10 years.
Not only does this tax-effective financial incentive boost your retirement savings, but it also encourages empty nesters to make a community contribution by freeing up their larger family home for the next generation.
Downsizing your life, not your expectations
Usually, downsizing means selling your high-maintenance home and all those possessions you’ve accumulated over the years. However, it doesn’t mean you have to sacrifice lifestyle, convenience, or luxury.
You now have a fantastic opportunity to begin the next stage of your life. It’s not so much about moving to a cheaper property with fewer, smaller rooms on a tiny parcel of land. It’s about next-stage living and moving somewhere appropriate and aspirational where your interior and outdoor spaces are more manageable while representing a financial benefit.
So, if you’ve decided to scale back, what are some of the things you should be aware of? Let’s take a look.
The upsides to downsizing
Savings — The obvious big benefit is that you’re going to save all round. A smaller home means less of everything, including a smaller mortgage and utilities bills like gas, electricity, and water. And, your energy costs will likely be significantly lower with heating and cooling a smaller home.
Less is more — Think about looking for something that has fewer rooms but is still roomy or gives the appearance of space. It also means you can go crazy in the areas you use and love. Go ahead and have that fantastic kitchen, beautiful living room with new furniture, ensuite, and large master bedroom. Make your new home all about you. However, to stop you and your partner from killing each other, hobby rooms are an excellent idea for some private time and personal space. They can also double as a guest bedroom. Just clear the space when visitors come over.
Don’t go too small — Even though you’re downsizing, you still need to give yourself some space. Going from a large home to something small and pokey is not the answer. Downsizing too small could be disastrous. Living right on top of your neighbours and finding out way too much about them is not only awkward but claustrophobic.
Location — You might want to move closer to the city or get away from the rat race altogether but consider your family and friends and ask yourself if they are likely to be frequent visitors if you go too far away. Ultimately, though, it’s up to you. Where do you feel comfortable living?
Declutter — If you’re going to downsize, you can’t realistically take all your stuff with you. Here’s your chance to get serious and have a substantial clean out before you move. Take a look at our blog on decluttering.
We’re sure you can find even more benefits to downsizing. If you’re considering moving from a large home to a smaller, low-maintenance property in the next few years, now might be a good time to bring that decision forward and take advantage of the extraordinary property boom.
The McGrath Real Estate Group’s professional sales team knows the ins and outs of downsizing and can lay out all the options.
Phone our office on 8350 4200, drop into 42 Brighton Road, Glenelg.