The current shift in economic conditions and personal priorities means a downsizer trend is emerging in 2023.
Switching from a larger to a more manageable property is making sense to a lot of people who have been reaching out to their real estate agents for advice about downsizing.
Take a look at the different reasons why you may decide to join this movement and say goodbye to your family home.
Why downsize in 2023?
During the pandemic, a lot of adult children found themselves back at home with mum and dad. Now there is the flexibility to move around again, if you have empty bedrooms and living spaces nobody uses, it’s time to downsize.
Opting for a smaller home doesn’t mean you can’t still have family come to visit; you may decide on a three bedder or a two-bedroom place with a study that can function as a spare room when necessary.
You have had enough of housework and gardening
The added effort of maintaining a larger property can become too much, even if you still have kids living at home.
A townhouse or apartment can still feel spacious but will save you from endless vacuuming and lawn mowing. Downsizing may require some time and effort as you decide what to keep and what to sell or throw out, but at the end of the day the less you have, the less you have to take care of.
The added benefit of downsizing is being able to move into a newer property that requires less upkeep than your old place.
You need to save money
Personal finances are stretched paper thin in 2023 and running a larger home can be expensive. From energy bills to maintenance and increased home loan repayments caused by consecutive interest rate rises, those costs add up.
Downsizing will release equity in your home or even allow you to live mortgage free. This is why couples and individuals of all ages are starting to list their larger properties for sale in 2023.
You want to earn more from property
One of the benefits of downsizing, especially if you have had your home for a long time, is that you may have the opportunity to invest in two separate homes and lease one of them out. This will give you a place to live and some additional income.
If you’re ambitious, there is even the potential to buy land and build a duplex or some townhouses (always work with experts before committing to this kind of strategy).
To put money in your super
New superannuation laws have lowered the eligible age for downsizer superannuation contributions from 60 to 55.
Under this incentive, if you are eligible, the ATO will allow you to place up to $300,000 of the proceeds from the sale of your home into your superannuation fund. If you’re working towards retirement, you may decide with the help of a financial planner or accountant that this is the right move for you.
For a flexible, lock up and leave lifestyle
Living in a larger home makes sense if you are raising a family and everyone needs their space. However, factors like security and upkeep come into play.
Switching to a downsizer lifestyle means you can still have a quality home with a beautiful kitchen, air conditioning, a terrace or balcony and plenty of storage space. The added benefit if you choose to switch to a strata-style apartment block with swipe card access is a heightened feeling of security and less to worry about when you’re not at home.
Ready to downsize?
Whether you want more time and freedom or you have a plan to unlock the equity in your home for better cash flow, the final reason to downsize in 2023 is that it’s a great time to sell.
Despite tricky economic conditions, property in Australia is still performing very well and stock is low. If you have a family home to sell, 2023 is an excellent year to find a buyer, fast.
Downsize your home, starting from now. Contact your me at teresa@teresaberger.com.au to find out more.
