Generally downsizing means purchasing a property for less than the value of the existing home. Freeing up this extra cash is a great way to pay off any outstanding mortgages and potentially allowing you to have some money for that trip of a lifetime.
It also gives you options of having equity in your home ready to go and available if you do need to assist family members with their first home.
This choice may be the first step to give you more freedom in your life.
If you sell your existing home and buy a smaller and less costly home, you could be able to put more into super fund allowing for a better retirement in the future.
While there are many costs with moving house and downsizing there are some long-term financial savings to be made. This includes cheaper utilities bills because the less space you have the less you’ll be spending on gas, heating, cooling and maintenance.
It may allow you more disposable income each week so you can spoil yourself more often. Even allow you to spend more time with friends and family or buy that special gift for the grandchildren.
Any money you have left over after you’ve sold your old property and bought a new smaller one can become a deposit for a mortgage on another investment property. There’s always an opportunity to build wealth.
Having a smaller house also generally means you will have a smaller foot print on the environment. With any extra money you have from the sale of the larger house you could invest in more green technologies such as solar power and better insulation.
There is a lot of think about that is for sure and it can all seem daunting however we are here to guide you through the process. We love assisting people find their dream home and land. Give us a call today and start the journey towards a place of your own.