Is spring a good time to downsize?

Yes! There is a whole range of reasons why empty-nesters should take advantage of the market this spring to downsize.

To begin with, the federal government has introduced valuable financial incentives for downsizers to act now. The cornerstone of the new scheme, which kicked off on 1 July 2018, is that home owners aged 65 and over can use up to $300,000 from the sale of their home to make a non-concessional (after-tax) contribution to super.

You will need to have owned your current home for ten years to be eligible, however, each partner of a couple can access the scheme potentially allowing a couple to boost their combined super savings by up to $600,000.

From a market perspective, spring is always a peak selling period that sees more buyers competing for your current home, while offering pleasant weather to get out and about viewing homes listed for sale.

We’re seeing some outstanding properties come onto the spring market that combine all of the features empty-nesters are looking for such as generous living areas, lots of storage space and high-quality fittings and fixtures. Moreover, many of the apartments and townhouses being listed by Raine & Horne benefit from proximity to lifestyle amenities such as cafes and restaurants as well as easy access to health facilities and hospitals.

One of the pluses of downsizing particularly to a newer home is that the construction materials and appliances are often far eco-friendlier than we see in older properties. This can mean savings on utility bills – an essential drawcard for downsizers.

Coastal and regional areas remain popular for downsizers, especially those within a few hour’s drive of major metropolitan centres. With many of these markets experiencing growth conditions, downsizers would do well to start looking now at homes listed for sale now, rather than postpone their retirement dream any longer.

A smart strategy can be to speak with your local Raine & Horne agent to let them know what you’re looking for in a downsizer home, then when the right property comes to market you can be among the first to know.