Downsizing for Retirement – is it for you?

Selling your home to downsize has both pros and cons to it, which you would need to evaluate before making a decision.

Pros

• Easier and cheaper to maintain, and pay the bills.
• More convenient to your liking.
• More cash flow to pay off your mortgage, invest, etc.

Cons

• Less space and flexibility.
• New area and new people.
• You may have an emotional connection with the home that is full of memories.

Its important to consider what you will need in your house, and whether downsizing allows for that. There could also be additional costs like real estate agent fees, stamp duty, furniture removal, etc.

 

Alternatives

Instead of downsizing your home, you may also want to rent out a space, or sell/rent half of your house while you live in the other half, and more.

 

Age pension

Eligibility for the Age Pension depends on the asset test and income test. Learn more…

 

Before going ahead with this, its a good idea to get financial advice. If you need, feel free to reach out to us, we’d be happy to help.