Time to sell the family home?

By AMP, originally published on 20/3/15 amp.com.au/insights

With children gone and things slowing down it may be time to downsize.

When you’ve got a family a big house with plenty of room may make sense. But these days a smaller place may suit you better.

Dreams of a change may be beckoning… you may be yearning to wake up to the smell of eucalyptus or doze off with an evening sea breeze.

And if you have a mortgage, smaller payments—or none at all—will help free up some cash for you.

Why should I sell?

You may be tossing and turning over the decision to sell. Before you decide, consider the motivations of other Australians[1]:

1.    Financial

Buying a less expensive place means your home’s sale proceeds can free up money to invest, travel or boost your retirement income.

2.    Health

You may want to live somewhere warmer for health reasons. Or be close to healthcare and specialist services.

3.    Lifestyle

Perhaps you’d like to live close to family or spend less time looking after your home. You may aim to travel without worrying about who’ll take care of the house.

4.    Opportunity

The current property market may present a good time to sell—you may have found a house to buy. Current interest rates may be appealing if you plan to borrow.

5.    A fresh start

Selling may give you the fresh start you’re looking for. It may be time for a change and you’re ready to go.

What are the costs?

Sometimes selling can seem like the only logical choice but often, it’s not your only option. Downsizing may bring downsides and unforeseen costs—emotional, practical and financial.

There may be a lifetime of memories in your home and belongings that you and your family have collected. Then there’s the financial side of things—the costs of selling and moving, impacts on the kids’ inheritance and your pension entitlements.

Next steps

It’s possible that things may work out better in the long term—financially and in other ways—if you stay in your home and change things to fit you. Or selling may work out to be the best option for you.

Before making a final decision, it’s important to seek professional advice. At Blueprint Wealth, we offer financial advice that is right for you, no matter what stage of life you are at. Contact us to set up a plan that is right for you.

Important note: © AMP Life Limited. This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, AMP does not guarantee that it is accurate or complete.  You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, AMP does not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.