with Christian Ryals, LJ Hooker Dee Why
Downsizing is an option being considered by increasing numbers of homeowners and not just retirees, but all those looking to reduce cash commitments to property and free up money.
In the recent budget, the Federal Government looked at incentivizing older home owners to consider selling up and buying something smaller by allowing a large superannuation contribution from the sale, in certain cases.
While stamp duty, particularly at a state level, is still a major obstacle for many, downsizing does offer a number of benefits for all homeowners as bigger is
not always better.
It may simply be that spending money, energy, resources and time on the up-keep of your ‘largish’ home, is no longer an attractive option. If downsizing is something you’ve ever considered, here are some of the potential benefits of selling and moving into something smaller.
There’s a problem with space in houses: you have to fill it with furniture, rugs, art and more. This means you do not only pay for a bigger house but have to take into account these extra costs as well.
Save stress and money
Living in a larger home requires more time spent on its up-keep. From cleaning, maintenance, furnishing, outdoor home upkeep and the cost to run all of these, it can lead to a home that is stressful. Downsizing can mean a smaller workload, increased cash flow and greater flexibility, equaling less stress. This frees you up for fun, spending time with family, getting more rest and just enjoying your home.
If you have a family, there are some benefits that could result when buying a smaller home - family members are more inclined to bond, work together, be organised and compromise with one another. Nothing like sharing a bedroom and a closet with a sibling to learn how to share and be patient.
The rising expense of energy bills are an issue. According to Expatistan’s Cost of Living Index, the average utility bill for two people in a Sydney flat is $202 a month. Larger homes require more power to stay warm or cool and lit. You can cut bills by living in a smaller home.
Retiring and downsizing
For some, downsizing is a result of kids leaving home. This can help release capital, and it also offers the added benefits of reduced outgoings on utility bills, council tax, repairs and maintenance. And smaller properties can have the practical benefits of being easier to manage and maintain, especially if your mobility starts to lessen