FLOURISHING AFTER 50: We're in our 60s, our kids have moved out and the family home is too big. Should we sell and downsize, or hold onto it?

Dear Vanessa, 

My woman and I are successful our aboriginal 60s, and we're grappling with a determination that's weighing heavy connected us. We've lived successful our household location for implicit 30 years. It's filled with memories, and portion our kids emotion it, they're seldom location now. They've some moved interstate and lone sojourn a fewer times a year.

We're starting to wonderment if it's clip to downsize. The location is getting harder to maintain, and with the rising cost of living, it feels similar a batch of wealth is tied up successful a spot that's excessively large for conscionable the 2 of us. We'd emotion to escaped up immoderate equity to question and bask beingness much portion we're inactive active.

But astatine the aforesaid time, we're disquieted astir making the incorrect decision. We cognize that if we sell, we whitethorn ne'er beryllium capable to bargain backmost into the area. And portion downsizing sounds sensible, we're not definite if it volition truly springiness america the fiscal state we're hoping for.

We're besides acrophobic astir the imaginable interaction connected our property pension. If we merchantability and person other wealth successful the bank, volition that impact our eligibility? And is determination a mode to operation things truthful that we don't suffer excessively overmuch successful fees and taxes?

We'd emotion your thoughts connected whether downsizing is the close determination - oregon if staying enactment and waiting a fewer much years mightiness beryllium the smarter choice.

Best regards,

Greg.

Dear Greg, 

You're not unsocial successful facing this dilemma - galore couples successful their 60s are grappling with whether to downsize oregon enactment successful the household home. It's a large decision, and there's a batch much to see than conscionable the fiscal side.

Let's interruption it down.

THE EMOTIONAL TIES

It's earthy to consciousness attached to the location wherever you've raised your family. Even if your kids are seldom location now, the affectional propulsion tin beryllium strong. But inquire yourselves: Does staying successful the location inactive bring you joy, oregon is it becoming a burden?

FINANCIAL IMPLICATIONS

Downsizing tin escaped up equity that could beryllium utilized to supplement your status lifestyle. However, if you merchantability your location and extremity up with a important magnitude of wealth near over, that could interaction your property pension. Centrelink treats the proceeds from selling your location arsenic exempt for the archetypal 12 months if you program to bargain different home, but aft that, the wealth is assessed arsenic portion of your assets. This could trim oregon adjacent destruct your pension.

ONGOING COSTS AND LIFESTYLE 

Think astir the ongoing costs of maintaining your existent location versus the imaginable savings from downsizing. Would moving to a smaller location oregon a status assemblage trim your expenses and let you to bask much of your wealth now?

MARKET TIMING AND FUTURE PLANS

If you merchantability now, you whitethorn get a precocious terms successful the existent market, but it's existent that buying backmost into your neighbourhood aboriginal could beryllium difficult. If staying adjacent to household and friends is important, you whitethorn privation to research downsizing options successful the aforesaid country oregon see a smaller, much manageable spot nearby.

THE DOWNSIZER SUPER CONTRIBUTION

If you bash determine to sell, you whitethorn beryllium capable to marque a downsizer publication to your super. This allows you to lend up to $300,000 each from the merchantability of your location if you're implicit 55. This could assistance boost your status savings portion keeping the funds successful a tax-effective environment.

WHAT'S NEXT?

To marque the champion decision, I'd powerfully urge speaking with a fiscal adviser. They tin assistance you tally the numbers, measure the interaction connected your pension, and research whether a downsizer publication could enactment for you.

If you'd similar to research your options further, I connection a free referral service to link you with a trusted advisor who tin usher you done this process. 

This determination isn't conscionable astir wealth - it's astir designing the adjacent signifier of your beingness successful a mode that feels close for some of you.

Warm regards,

Vanessa