A Guide to Downsizing a Home in Australia

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A Guide to Downsizing a Home in Australia
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Downsizing means moving from a bigger space to a
smaller space. The reasons can be countless
depending on the situation. But generally, it is
believed that people downsize either because
they want to get rid of the extra baggage or they
are looking forward to staying at a serene
place, or even when children start to live away
and you find your home space big enough for two.
These are just some of the common reasons people
prefer downsizing. However, whatever the reason
may be, the decision of buying or selling a home
remains crucial. Typically, downsizing involves
the sale of your current house and purchase of a
new one.
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Types of Downsizing
Physical Downsizing Financial Downsizing Physical
downsizing is when you sell your current home
and move to a smaller one. Smaller can be the
one with fewer bedrooms, or it could also be a
smaller block of land with less yard space and
garden. For instance, physical downsizing can
also be considered in a case in which a married
couple sells their family home and moves to an
apartment after their children decide to move
out of the home and they no longer need space.
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Financial Downsizing
On the other hand, financial downsizing may
involve selling your current home and buying a
cheaper one. Cheaper house does not necessarily
mean smaller house. Lets understand this with
an example, retirees might choose to sell their
medium-sized urban home and move to a regional
area with a peaceful environment. It is quite
possible that the house turns out to be a larger
one than the previous house. Research on
downsizing from the Australian Housing and Urban
Research Institute (AHURI) found that the
financial downsizing isnt common among people.
It is only about 20 of homeowners aged 55-64 in
2001 had moved to a dwelling of lesser value by
2016.
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Pros of Downsizing
You save hundreds and thousands of dollars. You
can use that saving amount to pay off a
mortgage, investing, funding your retirement, or
anything that you want. There are government
incentives for downsizing a house discussed
below. Just keep reading. You get to move into
the home of your choice, like the one that is
easier to maintain. You can move to a better
location maybe a beachside, urban convenience,
or a relaxed rural setting, anything that you may
have wanted for yourself. Well, as per a survey
by downsizing.com.au, the above are some of the
popular options. Moving to a smaller place means
you can have cheaper insurance and utility
bills. Also, lower council rates and mortgage
repayments. By this move, you get to help the
younger buyers, potentially family members in
buying their first home may be.
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Housing Options for Downsizing
Let us first burst a common myth and that for
downsizing, people move from a family home into
a retirement village. This is not a lie many
people might opt for this choice but the fact is
that it is not the only limit for
downsizing. There is a galaxy of
downsizer-friendly housing options that suits the
requirement and budget of a wide range of age
groups and their preferences. Apart from
village, downsizing may also involve moving into
duplexes, villas, and apartment complexes
(designed specifically for Australians over the
age of 50). Not just this, it could also involve
moving into specific downsizing communities,
seniors rental villages, freehold over 55s
housing, and even retirement villages. Beside
the above, low-cost downsizing options also
include granny flats and tiny homes.
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How to Plan for Downsizing?

• The idea of downsizing is not bad. It is a great
  move and congratulate yourself for that. Selling
  your current home and buying a new is a big
  move. Your family and you are likely to have
  financial and sentimental bonds.
• Take it into the account and discuss the proposed
  downsizing decision with your children and get
  the perspective so that everyone agrees and is
  on the same page.
• At the same time, it is important for you to seek
  a wise advice. For that, you can contact the
  local real estate agent like in Hampton Park,
  Pakenham, or nearby suburbs.
• You can call and seek guidance from the best real
  estate agent Manny Singh serving in Hampton Park,
  Narre Warren, and the nearby areas.
• Having a real estate agent by your side is great
  but at the same time, you must also get legal and
  financial advice to support your decision
  strongly.
• As a home buyer, you might also need to consider
  varying land title and contract options, their
  potential benefits and impacts on the income
  sources and savings. For all this, it is
  important for you to seek out legal and
  financial advice.
• You are thinking of downsizing, so you may also
  want to know about decluttering expert, who can
  give you advice on reducing possessions.

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Lifestyle Considerations Before Downsizing
Apart from the financial considerations, there
are lifestyle factors too that you must take
into account because these decisions also have a
potential to affect your decision. Proximity to
Friends and Family You may not be living nearby
friends and family members but now you may want
to be in the vicinity of your loved ones. So,
this factor must be taken into account while
downsizing. Flexibility Shifting to a smaller
house means less maintenance but at the same
time this decision will give you less flexibility
in terms of space for guests to stay.
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Emotional Attachment
Leaving a home in which you have been living for
years may get difficult at times. Emotional ties
with the current home along with special
memories can be challenging. So, this factor must
also be considered before finally
downsizing. There is no compulsion in downsizing
a home at a certain age. You can do it as per
your needs and circumstances. There is no hard
and fast rule to downsize. All you need is some
right guidance and that you can get from a local
real estate agent only. So, if you are looking
forward to downsize anywhere in Hampton Park,
Narre Warren, or nearby suburbs, contact just
the best real estate agent, Manny Singh.
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3 Withers Ct, Pakenham VIC 3810, Australia
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61 423 277 447 manny.singh_at_freedomproperty.com.a
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