Selling the family home and buying or building a newer, smaller home means you can pay off a significant chunk of your existing mortgage – or in some cases, pay it off completely. With the proceeds of the sale, you can buy an amazing new home that better suits your future needs, or purpose-build a dream home that will perfectly fit your life stage and style for the next 30 years.
A big benefit of selling the family home is there is no Capital Gains Tax (CGT) payable on the sale of your primary place of residence – which means more money in your pocket to invest in buying or building your dream home in the perfect location.
Generally, people choose to downsize because of a significant lifestyle change – for example, the kids have left home and you’re now starting to plan for life after retirement. Not being bound by work can free you up to live where and how you’ve always dreamed – whether that’s a seachange, treechange, interstate move or simply a change of suburbs.
When the kids leave home, you’re left with a lot of space. This can mean that bedrooms, rumpus rooms and potentially even entire floors are no longer used. This is not only a waste of space (that someone else would love to get to utilise), but it is a lot of extra effort to maintain these areas.
If you buy or build a new home, you can enjoy significantly lower living expenses compared to maintaining a larger family home – for example, having a smaller area to cover and using the latest energy-efficient appliances and design ideas can drastically lower your heating and cooling bills, giving you more money to enjoy life