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Preparing to retire and downsizing your life

By Jamil Allouche

If it is time to retire to a new home, the team at Ray White Brunswick can help you with all your downsizing needs. It could be just the right time to double check your retirement plan before you make the big decision to sell your family home and move. There are many things to consider and understanding why you  want to retire, when the right time is and if downsizing your life will really relieve you of stress.

Using an online retirement calculator can help you keep on track of your finances and it will help confirm if it is the right time to retire, or if you are a few years off yet. 

What are the catalysts for people to retire?

People over 50 retire for a number of reasons. They have a loved one has poor health, they want to free up more of their time, they are unhappy in their work, the children have left the nest or they just think it is the right time. The key to finding out when the best time is to retire is by knowing that you can finance your lifestyle should any of those reasons push you into retirement. 

Thinking of downsizing your home

There are many positives about downsizing your home – maintenance to keep it clean and tidy won't be as stressful and you will also be saving on furnishing and electric bills. Here are just a few of the main reasons why downsizing your home can help you when retire;

  • Smaller mortgages – when you downsize your home, it is often a less expensive house and therefore your mortgage payments should be less, or you could even own the house mortgage-free.
  • Less utility cost – if your children has flown the nest, then you may not need as many rooms as before. This allows for less utilities and will help you save on power and water bills.
  • Less maintenance – again, with a smaller property comes smaller problems. You may no longer have a section to maintain and therefore pay for.

Choosing the right area to live is also a huge part of downsizing your life. Do you want to be in area that you have access to local shops, medical care and culture? Do your homework before you talk to the real estate agent so you can tell them exactly what type of home you want and where you would like it to be.

Along with selling, there is also the option to rent out your home and invest in a smaller one. The alternatives to selling are getting also getting a reverse mortgage which your financial advisor can talk to you about. 

Things to be aware of when downsizing your life

Make sure you are not rushing into anything with your eagerness to retire. If you are in a partnership then you discuss it with your significant other. You need to establish you can life off one-income and if your savings will allow you to live a comfortable life without the both of you working. The best thing to do is ease slowly into the transition. Slowly cut back your hours or days if you can. Then measure if you can finance your new lifestyle. It will be a good indication of what you are spending your money on when you are not working as much during the week. 

Talk to the helpful team at Ray White Brunswick to find the best home for you if you plan on downsizing and living the retired life.

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