Downsizing: When, Why, How

October 04, 2016
Shae Aiello

While every Australian may eventually wish to downsize, many are often faced with the challenge of deciding when, why and how.

Before you start the process of downsizing, it is important to consider your full financial situation, as well as your long-term objectives. Ask yourself: why are you downsizing, what do you hope to achieve and when is going to be the perfect time (financially speaking) to downsize?

Why should you downsize?

Downsizing can positively impact your life in a number of ways - including both financially and physically.

When you downsize, you will (hopefully) sell your current property for a tidy sum and move into cheaper accommodation, leaving you with a healthy cash injection that you can then spend in your twilight years.

From a physical perspective, downsizing allows you to move into a smaller home that requires less physical upkeep and maintenance - saving you time, hassle and energy cleaning the home.

When should you downsize?

Deciding when to downsize can be difficult.

To determine when the right time to downsize is, it is important to review your financial situation. If you have bills that desperately need to be paid (but you can't afford them), or you are moving into retirement and needing a cash injection to fund your lifestyle, downsizing may be the ideal solution.

An experienced mortgage broker, like Russell Crook from Mortgage Choice in Joondalup, will be able to advise if downsizing is the right option based on your financial situation. He will also be able to talk you through the whole process so that you understand exactly what is required of you during the downsizing process.

How can people downsize - where should they move to?

Once you have decided when and why downsizing might be right for you, it is important to consider the type of property you want to downsize into.

Homeowners have the option of moving into a smaller home with fewer amenities, for example, no pool, stairs, backyard etc. Or alternatively, moving to an apartment or retirement village, depending on your lifestyle and stage of life. Downsizing ultimately depends on what you hope to achieve and what you are looking for in the future.

Before making any major financial decisions, it is important to weigh up your options and determine which choice might be right for you and your financial situation. 

That is where having help and advice from an experienced mortgage broker, like Russell Crook from Mortgage Choice in Joondalup, is essential. To see if now is a good time to downsize, contact him today on 9300 9322 or joondalup@mortgagechoice.com.au.

 

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