Thinking of downsizing? Now may be your moment!

With the events over the last few years, many of us are looking for ways to seize the day and reduce our stress and overheads. With the thought of a simpler, less cluttered home and life, as well as a fresh start, and with the Neutral Bay property market still doing relatively well, if you’ve been thinking about a lifestyle change, now is a great time to do it.

Downsizing isn’t as easy as just selling up and moving into a smaller house. There’s a lot of planning that needs to go into moving from a larger property to a smaller one. Here are some things to consider if you’ve started thinking about downsizing, simplifying and moving into a smaller property.

Seek financial advice

One of the best things about downsizing for most people is that it frees up what is potentially a lot of money, leaving you mortgage-free, or with a substantial nest egg. While this may give you plenty of options for buying a new home, it is also worth considering your full financial position, and what to do with your newly released equity.

One option is to put it into your super. Why is that a smart move? Well if you are eligible for the Federal Government’s downsizer contribution program, you could put up to $600,000 into your super (for a couple, $300,000 for a single.) The age for this contribution dropped from 65 to 60 as of July 2022, so it is certainly worth checking out your potential options.

Speaking to your accountant or financial advisor should be first on your list to do when considering selling you home.

Talk to us

You don’t need to wait until your home is ready to sell before chatting to the friendly team here at Home Property Agents in Neutral Bay. Speaking to us early in the process about what the market is doing, what options you have when it comes to selling, and whether it is beneficial to sell or buy first, will allow you to make some clearer decisions.

Selling first may give you more freedom and increase your negotiating power as you’re a cash buyer, while renting rather than buying may allow you to live for a while in a place before deciding if you want to settle there more permanently.

Our team can also give you some pointers on getting your home ready for sale – and ensure you only do what’s necessary to get the best possible price for your home.

Get your home ready for sale

So while the market in Neutral Bay is still quite good, you may find yourself eventually faced with selling in a slowing market. A slowing market doesn’t mean that you won’t still get a great price for your home – it may just take a little longer to sell. This is why it’s always a good idea to chat to the team here at Home Property Agents before you sell. We can give you an idea of what is happening in the market, and what you can expect when you put your home up for sale.

Getting your home ready for sale can be a lengthy process, particularly if you’ve lived in a home for a long time. But a well-prepared home will stand out in the market and sell for significantly more.

When it comes to this stage you really have two options – you can do cosmetic changes to bring a fresh new look to your home, or if you have an older home, you may consider some bigger changes. It is important however not to overcapitalise; spending $25,000 on a kitchen doesn’t always correlate to an increase of $25,000 in sale price.

For those smaller cosmetic changes, look at:

• Fresh paint throughout. If your paint isn’t too old, a good clean down will help.
• Upgrade the smaller fixtures – tapware, showerheads, light fittings, oven, cooktop etc.
• New flooring can make a huge difference to the look of a home. You don’t need to spend your entire budget here though, and new carpet doesn’t need to be expensive. Floors not too old? Get a carpet cleaner in to give you carpets a good clean – even better if they clean floorboards and tiles as well.
• Declutter to get rid of those things you just don’t use anymore (this will certainly help when downsizing as well!)
• Immaculate presentation. Buyers understand that you are still living in your home, but if you can present your home well, it makes a big difference.

Talk to us

When considering downsizing, it is important to really consider whether you are ready. For many of us, our homes hold memories – from the place our children took their first steps, to celebrations with family and friends. The team at Home Property Agents in Neutral Bay understand this isn’t always an easy process, and are always happy to have an informal chat with you about selling, buying or renting a new home. If you’re considering downsizing, come and have a chat with our team.