What every downsizer needs to know

Let’s face it the thought of downsizing can be daunting!  However, for many different reasons it may now be the right decision for you. So here are some tips to help you start your downsizing journey.

Get Financial Advice

Once you have made the decision and discussed with family and friends, as required, it is extremely important to work with your financial advisor to seek the appropriate advice around how downsizing will financially affect you. If you do not have a financial advisor, ask around with family and friends or speak with your legal advisor for a referral.

Where to Next…Start Researching

There are so many options these days for downsizers depending on your desired lifestyle and financial situation.  Start researching and thinking about what suits you best.  Some of those options may be:-

1.      A smaller house on a small block of land

2.      A Retirement Village unit

3.      A detached townhouse or villa

4.      A unit or flat

Only you and your advisors will be able to work out what option suits you best.

Start packing early – It’s a big job!

Start packing and decluttering as soon as you start thinking about downsizing. A lot of the stress can be taken out of this process if you have already packed away items that you will take with you and given away items you no longer wish to keep. If you need help, there are many companies that can help with packing and decluttering so if the job is getting too big. Alternatively, a few working bees with families and friends is also really helpful.

Find a Real Estate Agent or Vendor’s Advocate you feel comfortable working with

Do not underestimate the value of working with a Real Estate Agent and/or Vendor’s Advocate you feel completely comfortable with. Someone who is on your side and understands that this is one of the biggest decisions in your life. The advantages of having someone who understands you and your needs will also take some of the stress out of the process. They may be able to help you with outsourcing items such as packing, decluttering, small maintenance items and styling of your house.

Are you are considering buying before you sell?

If you are considering taking the plunge and buying before you sell, there are many things to consider, for example:

· Do I have sufficient funds to pay my deposit for my purchase

· If I cannot sell my property in time to settle my purchase, do I have access to the full purchase proceeds for settlement whether that be access to the cash funds, bridging finance or another alternative

It is important you are aware of the different scenarios and requirements and obtain sufficient advice from a financial advisor and conveyancer and/or property lawyer.

Have your Contract and Section 32 reviewed before you sign

Before you make an offer and sign a Contract of Sale to purchase your new home it is extremely important to have the Contract of Sale and Section 32, Vendors Statement looked over by a property lawyer or conveyancer. They will review and advise you of any matters which may be detrimental or that you may need to look into further, prior to purchasing the property. 

Thinking of purchasing a new home in a Retirement Village

Retirement Village Contracts and Agreements are not all the same and require a careful and considered review. There are a number of different types of arrangements in which a Retirement Village can be purchased, for example:

· Purchase as you would a regular property and be the registered proprietor of the unit following settlement

· Purchase under a lease arrangement whereby you will pay an “ingoing contribution” to allow you to reside at the Retirement Village

Once the review is complete you will more than likely have further questions and the documents may require further clarification and discussion.

Moving Day

Moving day is stressful and emotional.  Leaving the house you have built a lifetime of memories can definitely take it out of you. Where possible have all or most of your belongings packed up and ready to move the day before and stay with some family or friends. This way you won’t be running around on settlement day packing and cleaning up. 

Get Excited – This is a wonderful new chapter of your life and a time to build new memories

Remember your financial and legal situation has more than likely changed following downsizing, so now is a perfect time to consider your Estate Planning to ensure your family is taken care of. Make sure you book an appointment with your Estate Planning Lawyer to put this in place.