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Downsizing Over 50?

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With the kids leaving home some people will consider downsizing over 50

Australians are facing an awakening – they are waking up in large homes will the realisation that their needs are no longer being met. Should we consider downsizing over 50? We tend to think that downsizers are over 65, but in reality, many have turned 50 and are tired of maintaining large homes. Time is precious and when you are wasting a lot of yours around the house and at work, your opinion starts to change. You don’t need a large garden or five bedrooms anymore. You want a simple home that speaks to who you are as a person.

There are countless homes across Australia where older people are living with two empty bedrooms (or more). Experts estimate that this number is in the millions. Many of those seniors are interested in moving to more suitable accommodation. There are barriers for many people, though, and that’s something that you need to take into consideration if you’re considering downsizing over 50. Here are our four tips for downsizing over 50.

Tip One: Get Informed

The biggest issue for downsizers is that they don’t have all the information they need to make good decisions. Most people turn to their family and friends to ask questions, but they aren’t experts. So, don’t get informed by asking someone you know. Get advice from legal experts. You must consider the impact on your finances, health, and lifestyle before you make any definitive moves.

Tip two: Read what the Survey says

In a 2014 survey from the AHURI, Australians described their dream home (for downsizing) as being smaller than the home they’re in now, easy to move around and access, ideally just on one level, an improvement in lifestyle terms, close to amenities, and located in a desirable area, as well as likeable neighbours.

It’s important that you know exactly what type of amenities and home that you want before you start looking. If you can hammer out the details, it should make the process much easier.

Tip Three: Do your state-based research

The Australian government starts an incentive programme in 2018 that helps downsizers. Many states offer their own incentives. Check with yours to see if there are any offers for downsizing over 50.

Tip Four: Examine the barriers for downsizing over 50

For many, there are financial barriers when it comes to downsizing. Even if you aren’t particularly worried about the financial aspect, it’s still important to know what you’re getting into. Firstly, there’s the stamp duty that you must pay when you purchase a new home. This will be subject to incentives in your state, of course. Many of the retirement or lifestyle villages for over 50s don’t attract the stamp duty. This is why they are such an attractive prospect for people. Secondly, the excess from selling your home can have an impact on your access to pensions. This is why it’s always wise to consult a legal expert or financial adviser. It’s always smart to have your affairs in order.  

Ultimately, it’s never too early (or too late) to downsize and financial considerations are a small slice of the pie when thinking about downsizing over 50. The most important point we can leave you with is to seek advice from the professionals so that, no matter your situation, you are totally prepared.

Read more Tips and Information on Downsizing at Downsize Now

A little planning now will save a lot of hassle later

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