If staying is not an option, there are several pathways sellers at this stage of life might consider, either as a first step, or a next step.
These can include:
- buying or renting a smaller home outright
- moving into a retirement village
- considering aged care for those needing more support.
Depending on your age or stage of life there is no right or wrong choice, just what’s best for you. There are very different tax and Centrelink implications depending on which option you choose so it is important to get independent financial advice.
In a recent article, Australian Property Investor outlined some of the key considerations for those considering aged care and retirement village options.
It highlighted that you’re not alone in weighing up your options, with a recent survey showing retirement planning was the main financial investment strategy Aussies were considering.
“For many Australians, the family home is not just a major financial asset but a repository of memories and a legacy for future generations,” it reports.
“Yet, the costs of aged care can be substantial, and understanding the financial implications—alongside Centrelink rules, resale costs and tax consequences—is critical to making an informed decision.”
To help weigh up your downsizing dilemma, start having conversations early with your support crew. This might include your spouse, family or financial advisor.
Getting a handle on your financial needs, now and into the future, can help shed light on the right path to take and set you up for a great next chapter in your life.
Thinking of downsizing? Contact us for a chat about anything real estate.
