Retirement is an exciting time, an opportunity to shake up your life and move into a new era. For many, it’s a time to simplify and focus on what matters most – your health, well-being and appreciation of life. For this reason, many people opt to sell their big family home and move into a smaller, more manageable abode. This is called downsizing, and it’s all about moving to a household that’s appropriate and comfortable for the stage of life you’re in.
Government Incentives to Downsize
Australians are big on downsizing, with over 50% of people between the ages of 55 to 64 having either thought about downsizing or actually gone ahead and moved to a smaller home. Downsizing from a large property you have been paying off for many years, or have fully paid off, helps free up capital that gives you more options going into your retirement years.
The federal government has made it easier and more financially attractive for retirees to downsize into smaller households too, providing an incentive to get the ball rolling for retirees. People aged 55-plus can top up their super by $300,000 for a single or $600,000 for a couple. This has helped urge nearly 60,000 downsizers to sell their homes in the last five years, contributing $14.5-billion into superannuation.
Where to Downsize To
The exciting changes that come with retirement require a lot of thought and planning. Downsizing will be one of the bigger changes, and you’ll want to plan appropriately for a lifestyle that suits your needs now and into the future. I want to explore the options you have in Australia with regards to the type of property or lifestyle you could choose. Let’s take a look.
Apartment Living
Looking for a low-maintenance, secure and lock-and-leave lifestyle? An apartment is a fantastic choice, where preparing your home for a trip away is as simple as locking the door! Fewer rooms and no gardens to look after make this a simple and convenient choice. Most apartments are in complexes with pools, gyms, barbeques and communal areas, so you can enjoy a full social life without going anywhere.
The complexes are usually located in built-up areas where amenities, shops, cafes and public transport are all on your doorstep. This helps make your new apartment lifestyle convenient and easy!
Retirement Villages
If you’re after the perfect balance of privacy and community spirit, a retirement village could be the answer. These are designed for over-55’s, and many people move into them before they retire. The household will be a smaller apartment or townhouse, within a purpose-built complex with shared facilities like gardens, clubhouses, or even golf courses.
Different retirement villages offer different things, but the general idea is you have time to enjoy life as an on-site team takes care of your garden and maintenance. Services like transport, meals, laundry and housekeeping can also be provided, and often you’ll find an on-site restaurant which makes for a hub of socialising
You’ll be surrounded by people at a similar stage of life. Events and activities are planned which help foster a sense of belonging and camaraderie, and you can engage with the community as much or as little as you like. A vibrant atmosphere with access to support services and the facilities on-site to care for you as you age make for peace of mind and an enjoyable life.
Independent Living
Independent living is for adults who want to remain independent yet want access to services and support that free up their time and reduce the pressures on their life. The properties are self-contained, and often located in retirement villages with a sense of community and access to aged care support. The key is the ability to enjoy your own private space while having the freedom to come and go as you please.
Buying a Smaller House
Some retirees may feel they’re not quite ready for the move to a retirement village kind of set-up. Or they want a stepping stone towards that style of community living. Downsizing to a smaller and more manageable home is a great option here – you maintain your independence while reducing the upkeep of your property. For some, this works well if they want to stay in a particular area that doesn’t have retirement village facilities nearby.
The plus here is you could also get to free up equity when you sell your larger home, which can be directed into your superannuation as discussed above. Look for homes with features that make life easier as you age – close to essential services, have no stairs, and offer easy access to the outdoors!
Moving in with Family
This can be a wonderful option if you have family members with a granny flat or the dual living space to house you. You get to be close to loved ones, sharing their daily life and helping the reduce living costs.
This option does require a lot of communication though. It’s important to have clear and open discussions with family members about what everyone’s expectations are with the arrangement. Things like personal space, household chores and the splitting of costs all need to be discussed, which will help make the transition smooth and enjoyable for everyone.
Buy a Campervan and Hit the Open Road
If you have an adventurous spirit, retirement could be the perfect opportunity to downsize your entire life to four wheels and hit the open road! Campervan living might not be a sustainable long-term solution, but its the fulfilment of a lifelong dream for many retirees. You get to explore beautiful Australia at your own pace, from the outback to the epic coastlines. You can visit all your friends and family, and will have lots of time to think about your next step in retirement.
Contact the Brisbane Downsizing Experts
We’ve helped countless couples in their downsizing journey at the Henry Wong Team®. The journey to the perfect retirement home can be overwhelming, but we’re here to help and guide you into a comfortable future.
This is an exciting new phase in your life, one that requires a lot of thought and planning. Talk to your friends and loved ones, and explore all your options thoroughly. Making the right choices now will set you up for many years of happiness.
We’re always here to answer your questions, so please get in touch with me and my team if you have any.
