Four upsides to downsizing your Hamilton home
Downsizing your Hamilton home is a step backwards, right?
Downsizing a home has become a popular choice for homeowners, particularly as they approach retirement.
But what are the benefits? Let’s take a look at four reasons downsizing your next home is a good idea.
- It can be less work
Yes, a larger property will provide more space. But with that comes more cleaning. More gardening. More upkeep.
If you find yourself wishing you had more time for the things you enjoy (and more money, for that matter), OR constantly worrying that you’re not getting done all the jobs around the house you need to do, downsizing to a smaller, lower-maintenance property can be a way to save time, money and guilt.
This is particularly relevant if children have left home, leaving certain areas of the property – both inside and out – unused and untended-to. Imagine being able to spend less time dusting and vacuuming empty bedrooms, and more time with friends, or undertaking those hobbies you really love?
- Money for other things
Downsizing, for many, allows them to finally live mortgage-free. If you have significant equity in your current home, downsizing may mean you can pay off your next home outright.
Alternatively, downsizing your home can also mean downsizing your mortgage – and your repayments. The potential savings could then be used to, for example, reduce personal debt, or even pay off your mortgage quicker.
What about putting it into a retirement nest egg, by contributing the sale proceeds of the bigger house to your super fund? Since 1 July 2018, people aged 65 or over can make a ‘downsizer’ contribution to super of up to $300,000 from the proceeds of their home sale (or $300,000 for couples.)
Your Financial Planner, Accountant or Superannuation Specialist is the best one to speak to about this – don’t underestimate the value of consulting an expert in this area – it can mean thousands of dollars difference in your super fund!
- Lower ongoing costs – and it’s better for the environment!
Downsizing may reduce the running costs of your home, like your utility bills and maintenance costs. It costs less to heat or cool a smaller property and generally there are fewer appliances. Again, this money could be used for other things like investing or improving your lifestyle.
Another important aspect of downsizing is that it’s better for the environment; less energy consumption is also better for the environment. If being green is important to you, downsizing may be the way to go. You may also find there’s less space for “stuff”, which forces you to declutter and cut down on other areas of consumption.
- The ability to live in your dream location
Is it time for a change of scene? A so-called sea change or tree change?
Maybe you’ve always dreamed of moving from the isolated farming property to the heart of your local town or city. Or just a stone’s throw from family.
Downsizing to a smaller property could make this dream a reality – because a smaller property can be more affordable and more readily-available than a larger, more sprawling home.
There are plenty of upsides to downsizing; reduced living costs, more time for hobbies, improved quality of life. But there can also be other financial implications for Seniors – for example, downsizing could impact the amount of social security benefits you receive.
To ensure downsizing works in your favour, and does not disadvantage you, speak to a Financial Advisor before deciding if it’s the right option for you. Sinclair Wilson has a team of Financial Advisors who specialise in this area and can provide practical, down-to-earth advice to ensure your glory years are, indeed, glorious!