With the current Government advice to stay at home, downsizing from the family home may be the last thing on your mind.
But the pandemic has led to concerns for many relying in their superannuation that they may need to put off their hard-earned retirement or return to the workforce if they are able.
Younger generations will have time to years to bounce back from the decline in the share market, but for those closer to retirement, it may be time to re-think your housing options.
If you are looking to free up some cash, downsizing to a smaller, easier-to-maintain home could be the answer – particularly if you are among the one-third of 60 to 65-year-olds now retiring with a mortgage.
And while the real estate market has also taken a hit, there are predictions that flattening the curve of the virus could allow the market to swing back into positive territory by spring.
The Government has also provided a number of incentives for older Australians to downsize.
Since July 2018, the Downsizer Contribution Scheme has offered over-65s the chance to contribute up to $300,000 (or $600,000 for couples) from the sale of their home straight into their superannuation fund.
Retirement villages and lifestyle communities provide the obvious solution. With no stamp duty, council or water rates and prices typically below the average two-bedroom house price, you’ll find one in every community.
Search for one near you on villages.com.au.
