Home downsizing services

Yes, you can make a downsizer contribution into your superannuation, which may later be used to fund an account-based pension. This strategy allows eligible Australians aged 55 and over to contribute up to $300,000 per individual ($600,000 per couple) from the proceeds of selling their primary residence.

Key points to consider:

• Eligibility: You must have owned your home for at least 10 years, and the property must qualify for a capital gains tax exemption.
• Impact on super: The contribution doesn’t count toward your contribution caps, but it may affect your total super balance and potential age pension entitlements.
• Tax efficiency: Once the funds are in super, they can be converted into a tax-free income stream if you’re over 60.

We’ll help you determine if a downsizer contribution is right for you and guide you through the process.

The downsizer superannuation contribution enables Australians 65+ to use the proceeds from their home sale to make an after-tax contribution of up to $300k into their super account. Any contributions made in this matter don’t count towards your regular before- or after-tax super contributions.

In order to make eligible downsizer contributions, you must meet the following criteria:

• You’re 65 or older
• Your home is in Australia
• Your contribution comes directly from the sale of your home
• You make the contribution within 90 days of receiving the sale proceeds
• You have made no previous downsizer contributions.

Your super fund can supply you with a Downsizer contribution into super form to get you started.

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The best financing option depends on your financial situation, timeline, and goals. Here are some common strategies:

1. Selling first: Using the proceeds from your home sale is the most straightforward way to fund your new home purchase without taking on additional debt.
2. A bridging loan: Ideal if you want to buy your new home before selling your current one. These short-term loans provide flexibility but come with higher interest rates.
3. Reverse mortgages: Allow you to access the equity in your current home to fund your new purchase without immediate repayments.
4. Home loans for retirees: Some lenders offer tailored home loans with flexible repayment options to suit those on a reduced or fixed income.

We assess your unique situation to recommend the most cost-effective and practical financing strategy for your downsizing journey.

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There’s no one-size-fits-all answer to the best age for downsizing. It depends on your financial goals, lifestyle preferences, and retirement plans. However, here are some common scenarios:

• In your 50s: Downsizing early can free up equity to invest or boost your superannuation while you’re still working.
• In your 60s: This is a popular time for downsizing, as many are transitioning into retirement and looking to reduce living expenses.
• In your 70s or later: Downsizing at this stage often focuses on moving to a more manageable property or closer to family and support networks.

We’ll help you evaluate your timing based on your financial position and long-term objectives, ensuring you make the move when it’s most beneficial.

Downsizing a home means something different to everyone, so there are many different reasons for doing it. While there is no strict rule on the best time to downsize a home, you can often tell when the time has come.

• Do you have more rooms than you actually need? Maybe the kids have moved out, or you’ve gotten rid of a lot of belongings.
• You might be looking at a property with lower maintenance costs and less space to manage, or one that’s more accessible.
• For financial reasons, you might be looking at selling your larger existing property in favour of a smaller one.
• You might be looking to move closer to family.
• Or you simply might be looking to move to a new home, and you’re trying to make a sensible choice on the number of rooms you need to take care of.

There are many reasons you’d be looking at downsizing, and a good time to do it is when it feels right to you. But be sure to check with your financial adviser to discuss your options.

While downsizing offers many benefits, it’s important to consider potential challenges:

• Emotional impact: Leaving a long-time family home can be emotionally difficult.
• Hidden costs: Expenses like stamp duty, property taxes, moving costs, and renovations can add up.
• Financial implications: Depending on how you use the proceeds, downsizing could affect your age pension eligibility or tax position.
• Market timing: Selling in a slow property market may reduce the amount of equity you can unlock.

Legal fees related to property transactions can impact your overall budget, so it’s important to factor them into your financial plan.

With careful planning, these downsides can be managed. Our team ensures you’re fully informed of the potential risks and benefits, helping you make a confident decision.

The first step in downsizing is to get a clear picture of your financial and lifestyle goals. Here’s a practical approach:

1. Evaluate your current financial position: Understand the equity in your home and how it fits into your retirement plan.
2. Set your downsizing goals: Decide what you want to achieve — reducing expenses, simplifying your lifestyle, or freeing up funds for investments.
3. Seek professional advice: Consulting with financial experts ensures you maximise the benefits and avoid costly mistakes.
4. Declutter and prepare your home for sale: Start early to reduce stress and maximise your property’s value.

By following these steps, you’ll be well-prepared to begin your downsizing journey with confidence.

No, once you sell your home, what you do next is your choice. You don’t need to buy a new home with the proceeds of your sale — you don’t need to use the money towards property, or even use it at all.

Selling your property doesn’t impact your ability to access the age pension or your super pension under the assets test. Age Pension eligibility is based on the value of your assets and income at the time of the test. When selling your home, the proceeds from the sale are exempt for up to 12 months, as long as you plan to buy again, renovate, or build. It may impact your income, though, so check with your financial adviser to discuss your options.