5/29/2023 0 Comments Downimg house![]() ![]() Smaller or more affordable houses can have cheaper insurance and utility bills, as well as lower council rates and mortgage repayments You can move to a better location - ‘beachside holiday living’, ‘urban convenience’ and ‘relaxed rural setting' are popular options according to a survey by You can move to a home that’s suitable for your lifestyle (like one that’s easier to maintain) There are government incentives to do so (see below) You can free up tens if not hundreds of thousands of dollars from the sale, which can be used for paying off a mortgage, investing, funding your retirement, or anything you want Here are the pros and cons of downsizing your home: Pros of downsizing There are some obvious benefits to downsizing, but it can have some drawbacks as well. "Australian governments typically see downsizing, or rightsizing, as a way to use housing stock more efficiently, with downsizers reducing the number of bedrooms in their dwelling, freeing up larger dwellings.” "While downsizing may include a reduction in dwelling size, to older Australians it points to a housing aspiration where the internal and outdoor spaces are manageable, and represents a financial benefit," Dr James said. AHURI’s Dr Amity James said in 2020 that downsizing is mostly done to move to a more appropriate household for the owner’s circumstances, instead of just doing it to save space or money. Why downsize?Īccording to, around one in four Australians over the age of 55 are either downsizing or planning to do so in the future. Different terms, fees or other loan amounts might result in a different comparison rate. Warning: this comparison rate is true only for this example and may not include all fees and charges. *The Comparison rate is based on a $150,000 loan over 25 years. ![]() Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. ![]() Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Previous research on downsizing from the Australian Housing and Urban Research Institute (AHURI) found financial downsizing isn’t actually that common - only about 20% of homeowners aged 55-64 in 2001 had moved to a dwelling of lesser value by 2016.īuying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner-occupiers.īase criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. This same process can apply to renters who move to a cheaper property. ![]() The house itself might be larger than their previous one, but the cost of property in this new area is much less than the cost of their home in a major city. For example, retirees might choose to sell their medium-sized urban home and move to a regional area with a quiet beach. Financial downsizingįinancial downsizing might not be a physical downsize at all: it involves selling your current home and buying a cheaper one, and cheaper houses don’t necessarily mean smaller. An example of physical downsizing might be a married couple who sells their family home and moves to an apartment once all their children have finally moved out of home and they no longer need the space. ‘Smaller’ in this instance can be a home with fewer bedrooms, or it could be a smaller block of land with less garden and yard space. Physical downsizing is when you sell your current home and move into a smaller one. How to maximise the benefits of downsizingĭownsizing is essentially the act of moving from one home into another, and there are two main types of downsizing: physical downsizing and financial downsizing.ĭownsizing typically involves the sale of your house and the purchase of a new one. Making downsizer contributions into superannuationĭownsizer super changes - 2021/22 Federal Budget Whether you want to lower your mortgage repayments, move to a smaller home or one with less maintenance, free up some money for your retirement, or just want to move to a new area, downsizing could be the right solution.īut what exactly is downsizing? In this guide, will explore the following: ![]()
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