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Matthew McCabe, Newcastle Financial Planning, Lifestyle and retirement specialist financial planner

Retirement is near and the kids have finally left the nest for good!

Downsizing the family home can be a great way to free up cash for retirement and reduce ongoing expenses that may cut into your retirement savings. The money you receive can be invested in shares, term deposits, managed funds or superannuation.

It can also be an extremely appealing lifestyle move: a smaller home generally means lower maintenance and you have the opportunity to move somewhere more convenient. According to our business partner and Real Estate expert Allan Kentwell, Director of Easy Move Property – PRD Newcastle “for many people once the decision is made to downsize, the process becomes very liberating; they realise they just don’t need all those things they have gathered, sometimes over many years, and to give belongings away or sell them helps enormously with the transition to a different style of housing.’’

If you are considering downsizing, Allan recommends: ‘’when targeting the downsize property simply keep yourself in mind at all times; make a list of features and benefits you would like and focus on ticking as many of those boxes as you can’’.

From Allan and PRD’s experience, many of their clients find ‘downsizing’ very liberating yet can still become overwhelmed. So Allan and the team at PRD Newcastle developed a service to support people through the downsizing process, called ‘Easy Move Property.’

Finally, you need to consider the financial disincentives to downsizing, which include those related to the purchase and transfer of housing (e.g. stamp duty) and eligibility for the Age Pension. We recommend you speak with your financial adviser about the impacts downsizing will have on your particular circumstances.

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