The 5 Step Guide to Making Downsizing Simple
Most people undergo a downsizing process at some point of their life, whether that’s because of being transferred to a new city, are undergoing a breakup or divorce, had all their children move out, are aging, or simply wish to simplify their lifestyle.
Regardless of the reason, downsizing can be a stressful as well as taxing process – both emotionally and physically. While downsizing may appear overwhelming, it can bring about numerous lifestyle benefits.
Regardless of the reason, downsizing can be a stressful as well as taxing process – both emotionally and physically. While downsizing may appear overwhelming, it can bring about numerous lifestyle benefits.
Here are some downsizing tips from Paul Hill Realty Hope Island to help make the process simpler and less stressful.
1. Begin preparing the downsize process early
Downsizers generally begin contemplating a move when their grown kids have moved out, and the time, cash and exertion spent keeping the large family home begins to counter the benefits of staying.
It is important to discuss why you want to downsize with your family to get them on board so they can assist you with this process, even if that is by offering moral support. Downsizing doesn’t have to be stressful, sad, or scary. It’s about you and your family remaining positive and to get excited about the less cluttered home to come.
Regardless of the reason that someone wants to downsize it is critical to have plenty of time for this process, because it will inevitably take longer than you anticipate.
Don’t attempt to downsize your belongings in only a weekend, three to twelve months in advance to moving is a far more realistic timeline. Would recommend that you downsize one room at a time and take plenty of breaks throughout the process. If you aren’t rushed, you’ll find downsizing to be much less stressful and less junk you will move to your next home.
At the beginning of the downsizing home process, you need to know – ‘how you are going to make your move?’ Will it be rounding up friends/ family to help pack up and move you in? Or will you pay for a full-service moving company to pack up, move, and then unpack your things at the other end?
By knowing this at the beginning of the process will affect whether to keep or sell certain items. For example, you might be more inclined to keep a 100kg china cabinet if you’re using a full-service removalist. However, such heavy items can greatly add onto the cost of the move.
We know it can be tempting to start browsing properties before the downsizing process is underway.
Before that can happen, downsizers need to be partly or have finished downsizing their belongings, so they have an idea on their new space needs.
Then you can determine your budget by arranging a no-obligation free market appraisal by Paul Hill Realty Hope Island. To have a clear idea on what you can afford to spend on your new home when it’s time to buy.
2. Money saving schemes and incentives need to be investigated
There are multiple government incentives that Queensland downsizers could be eligible, just need to investigate.
A scheme is that eligible downsizers can make a one-off superannuation contribution of up to $300,000 from the proceeds of the sale of their Australian home, assuming they’ve lived in it for 10 years or more.
From July 1, 2022, the minimum age will be lowered from 65 to 60 for the downsizer contribution.
Downsizing normally implies moving to a less expensive property, so you normally also pocket a bit of cash. It’s probably not a bad thing getting a lump sum of money into your super account.
An incentive that downsizers may be eligible is the home concession that can save anyone purchasing a home (not just first home buyers) up to $7,175 off the transfer duty payable. This concession applies to the first $350,000 of the value, and the general transfer duty rates apply thereafter.
To be eligible, buyers must move into the home and live there daily within one year of settlement. In addition, not dispose of the property (in either whole or part) before moving in, or within one year of moving in.
You can also use the transfer duty estimator or rates for home concessions to find out how much duty you may have to pay when you buy your home.
Additionally, those who are either a holder of a Pensioner Concession Card (PCC) or Veteran Gold Card may be eligible to receive a subsidy of 20 per cent (up to a maximum of $200 each year) of the gross rates and charges levied by local council.
Now, we know that the last two are not schemes or incentives made just in mind for those downsizing, but it is a great way for those eligible to save additional money.
3. Select the ideal property
Downsizers need to take into consideration the lifestyle they are looking for when searching for the ideal property. Lots of people who are downsizing are older, perhaps less agile than they once were, and do not desire climbing steps every day.
Large, easily accessible apartments with a minimum two-three bedrooms and ample linen cupboards are most desired. Downsizers should also consider the ideal location – ideally within strolling range of shops, transport, and dining establishments.
Newer freestanding residences additionally have been proven popular with older buyers. An intriguing concept that is being seen increasingly more is ‘side sizing’, this is when people move into a property that has the same amount of living space as the one they have sold but much less maintenance.
We’re getting a lot more properties to sell that are still relatively large but have less maintenance. There are smaller blocks, but still have three or four-bedrooms. Downsizers still desire proportions.
Those looking to downsize that have lived in one neighbourhood for a long while need to remain open to finding the right home in a new area. Many downsizers often opt to make a sea or tree change when they do so.
It’s a really good idea to connect with a quality real estate agent that you can trust from Paul Hill Reality, to help you narrow down the type of property you’re looking to downsize to.
4. Declutter the home prior to sale
Relocating to a smaller home can greatly restrict what can be brought along, so downsizers should allow plenty of time to declutter.
While many items can be sold through either a garage sale or online. Expectations of item values don’t always match the second-hand market, and relatives can be reluctant or unable to take items.
The process of finding homes for beloved items that one does not have room for can be “emotionally charged” as in some cases a family will know what they have, while in other cases, they won’t. Auction houses can be a benefit as they have the expertise to discover the true value of those items, so sellers can make informed decisions when it comes to selling their possessions.
It can require a bit of creativity to try to find the right home for things that one does not have the strength to sell.
Like if an elderly couple had a substantial book collection, a lot of it could be donated to the retirement village library to where they downsized to, so they can visit their books from time to time.
5. Maximise home sale price
As soon as the home has been decluttered, one can concentrate on preparing the property for sale. Remodelling kitchens and bathrooms aren’t essential, but repainting interiors, replacing carpeting and cleaning up the yards to make the home even more enticing to potential buyers is.
In years past, people would normally sell their home first; obtain a longer settlement and head out looking for the next home. In this present market, you can buy and sell practically at the same time.
Some downsizers looking for more assurance around their budget choose to sell first and negotiate to rent their home back from the new owners for six to twelve months while locating their perfect new home.
Once you’re ready to sell your home, a quality real estate agent that you can trust from Paul Hill Reality can advise you what needs to be done to your property to get it ready for sale.
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