Hi Michael, we are investigating the option of downsizing from our family home. What should we be considering? Sarah, Newport.
Thank you for your question, Sarah. You’re not alone in facing this significant life decision. Many clients have worked hard to achieve full homeownership and the family home makes up a significant part of overall family wealth. Consequently, this transition presents several advantages, ranging from reduced maintenance burdens to unlocking capital to enable you to live the life you want to live. Nonetheless, it’s crucial to strategically approach this transition to maximise the sale proceeds and the surplus generated. Let’s delve into several options that can help you achieve this objective.
When it comes to selling your property and extracting most value from the sale, there are several strategic approaches to consider.
- Collaborating with an experienced real estate agent to analyse current market trends.
- Opting for professional home staging can transform your space, effectively showcasing its potential to prospective buyers.
- Before listing your property, conduct a comprehensive assessment of any necessary repairs or improvements that could enhance its market appeal.
- Addressing minor repairs and considering cost-effective upgrades like fresh paint or updated fixtures can significantly improve your property’s attractiveness.
Once you find the right property to downsize to, careful consideration should be given to investing the remaining sale proceeds. We typically look at Superannuation as a great starting point as this presents potential tax benefits and a means to bolster your retirement savings due to the tax concessions. There are various contributions that can be potentially investigated. One type of contribution for those aged over 55, is what is known as a downsizer contribution. If you meet the eligibility criteria this can enable someone to allocate up to $300,000 (each spouse) from the sale of your primary residence into your Superannuation fund.
As you embark on the journey of selling and downsizing your property, bear in mind that every decision you make can impact the outcome. Downsizing goes beyond merely transitioning to a smaller living space; it’s a strategic manoeuvre aimed at financial optimisation and a more comfortable lifestyle.
With thorough planning and the right guidance, you can confidently navigate this transition and position yourself for a prosperous future. The key lies in consulting with the right professionals early in the process, which can help mitigate stress and uncertainties along the way.
Any questions, please speak with your financial adviser, or call me to discuss on 8376 0350.
Regards, Michael
Michael de Bomford and Up Wealth Sydney Pty Ltd are Authorised Representatives of Consultum Financial Advisers Pty Ltd, AFSL number 230323, an Australian Financial Services Licensee.
This is general information only, as in preparing it we did not take into account your personal objectives, financial situation or needs. Before acting on this information, you should consider whether it is appropriate for your personal circumstances. Although the information is considered reliable, we do not guarantee that it is accurate or complete, and you should not rely upon it.
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