Are you looking to downsize your home?
Downsizing could be the way to go with minimual financial strains. Downsizing has many benefits - from cutting down on energy costs, no more major maintenance costs and having extra money in your pocket to travel or simply enjoy life. Here are some of the key reasons to consider downsizing:
Are you looking to downsize your home ?
More Funds To Invest -
Downsizing can allow you to unlock equity in your current home. If you have substantional equity in your home, you could purchase your new home in cash and any remaining funds can be used for an investment property which you may be able to start generating income from. You could also use the money on a new car or other lifestyle pursuits. If you’re interested in investing in property, just give us a call, we can help you in many different ways.
Less Expenses -
It goes without saying that downsizing can reduce your expenses, from mortgage repayments, to your electricity and gas bills. Less cleaning will also be an added benefit along with garden maintenance. Downsizing may even encourage you to get rid of unnecessary clutter.
Lifestyle benefits -
Are you looking for a sea change, a tree change, or maybe you've become less mobile and need a more accessible home? Downsizing could provide a great opportunity for you to live in a more desirable location, in housing that is more suitable for your needs or in an area with more community services or personal interests. If you’ve recently retired, have become an empty-nester, or recently single, downsizing could be the fantastic new chapter for you! Larger properties can be hard work and time consuming. Not everyone wants to spend their life maintaining a larger property or garden. Just think of what you could do with the time and funds by downsizing.
New tax breaks -
In the 2017-18 Federal Budget, the Government announced plans to encourage older property owners to downsize. This is intended to help free up larger homes for younger, growing families. From July 2018, retirees may be able to inject up to $300,000 into superannuation if they sell their home after they reach the age of 65. The existing voluntary contribution rules for people aged 65 and older (work test for 65-74 year olds, no contributions for those aged 75 and over) and restrictions on non-concessional contributions for people with balances above $1.6 million do not apply to contributions made under the new downsizing cap. To qualify, you must have owned your property for 10 years. What’s great about this new initiative is that both members of a couple can take advantage of the measure for the same home – that means as much as $600,000 per couple can be put into super! However, keep in mind that the proceeds contributed to superannuation will be included in the assets test for the age pension.
For more details ask your tax accountant – While it’s tempting to hold onto the family home because of the sentimental value, the reality is that it may be holding you back from a better lifestyle and a more comfortable financial situation. Downsizing could allow you to find a home that’s more appropriate to you, while also freeing up time and money to use elsewhere. If you’re looking to downsize or purchase your next home, please don’t hesitate to get in touch with on on (02) 9955 4449 or 1300 428 258! We would love to be able to help you find your new home.
Disclaimer - The information provided in our articles are reproduced from various articles / authors and/or websites and is for general information only. They are prepared without taking into account your personal objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. AVG Valuers or any of its related entities and third parties makes no guarantee to the accuracy and integrity of the communication, it's completeness, currentness, suitability or validity, for any of the information on this site. It will not be liable for any errors, omissions in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis and we also recommend obtaining professional advise from a qualified accountant and / or financial adviser with experience in this area. Liability limited by a scheme approved under Professional Standards Legislation