Downsizing, rightsizing, or just looking for a lower maintenance home, no matter what name we give it, it’s still a big decision. But, there is a reason why over half of all Australians aged over 55 are considering downsizing. If you are teetering on the edge, or would just like some more information to help guide your decision, here are a few considerations.
1. It’s all about the money!
You can add a large sum to your super via the Downsizer Contribution Scheme: The Australian government introduced a downsizer contribution scheme that allows individuals aged 65 and older to make a one-time, non-concessional contribution to their superannuation fund of up to $300,000 from the proceeds of selling their home. This equates to $600k for a couple. This incentive is specifically focussed on encouraging people to downsize.
Pensioner Concession: Be aware that downsizing can impact your eligibility for the Age Pension. Please do your research before making the decision to downsize and understand all of the potential financial implications. It’s advisable to consult with the Department of Human Services or a financial advisor for personalized advice.
Stamp Duty Concessions: If you choose to purchase a home at Lincoln Place, you will not pay ANY stamp duty. However, if you choose to downsize to a different home, some states and territories in Australia offer stamp duty concessions or exemptions for seniors downsizing to a smaller home. These concessions can result in significant savings during the property transaction process.
HomeBuilder Grant (NSW): The HomeBuilder Grant, introduced as part of the Australian government’s economic response to the COVID-19 pandemic, provided financial assistance for eligible homeowners, including those renovating or building a new home. While not specifically for downsizing, it could be relevant to you if you are considering building or renovating a smaller home.
Local Council Grants or Incentives: Some local councils may offer specific grants or incentives for seniors or individuals downsizing within their locality. These could include financial assistance for home modifications or other services. Definitely worth checking out with the council of your chosen area.
Affordable Housing Programs: In some cases, individuals downsizing to more affordable housing options may be eligible for assistance through affordable housing programs run by government or non-profit organizations.
2. Live life to the fullest!
There are numerous emotional benefits associated with downsizing:
Reduced Stress and Anxiety
Downsizing is often associated with a reduction in stress and anxiety. Research suggests that a smaller living space and fewer possessions can contribute to a more manageable and less overwhelming environment, leading to lower stress levels. Declutter and clear the decks for a stress-free and focused life!
Enhanced Quality of Life
Many individuals report an improved quality of life after downsizing. This includes a greater sense of freedom, increased flexibility, and the ability to focus on activities and relationships that bring joy.
Downsizing often involves decluttering and simplifying your living space. Research indicates that a simplified and organized living environment contributes to a sense of control and contentment.
Our Lincoln Place homes require less maintenance and upkeep. Studies show that reduced maintenance responsibilities contribute to a more relaxed and enjoyable lifestyle, particularly in your twilight years.
Positive Lifestyle Changes
Downsizing can be a catalyst for positive lifestyle changes. You may find yourself more inclined to pursue hobbies, travel, or engage in social activities when freed from the burdens of a larger home.
Transition to a New Chapter
Keeping a positive mindset as you make the transition to downsizing will help you feel empowerment and a sense of embarking on a new chapter in life.
Improved Social Connections
Moving to a Lincoln Place Lifestyle Estate means that you will be joining a community of like-minded individuals, and this can enhance social connections. Positive social interactions are linked to emotional well-being and overall life satisfaction.
3. Other benefits
Environmental Impact: Downsizing to a smaller home often results in a smaller carbon footprint. Lincoln Place’s brand new homes require less energy for heating, cooling, and maintenance, contributing to environmental sustainability and lower bills.
Social impact: By choosing to downsize to a Lincoln Place home, you are freeing up your larger family home, which helps mitigate the current housing crisis in Australia.
Reduced Maintenance: Downsizing to a Lincoln Place home means less time, money and effort spent on tasks such as gardening, cleaning, and general upkeep.
Increased Mobility and Accessibility: Smaller homes or single-level dwellings can be more accessible, promoting ease of mobility, especially for individuals with mobility challenges or those looking to age in place.
Flexibility and Freedom: A smaller home provides greater flexibility for future life changes. Whether it’s relocating to a different area, traveling extensively, or pursuing a new lifestyle, downsizing can offer more freedom and adaptability.
Focus on Experiences over Possessions: Downsizing encourages a shift in focus from accumulating possessions to valuing experiences. Having a smaller space often means prioritizing meaningful experiences and relationships over material belongings.
If you are still in any doubt as to the benefits of downsizing, why not visit one of our many Lifestyle Estates and talk to the residents who live there? They will probably have many other positives to report that are not listed here!