{"id":993,"date":"2022-09-12T14:11:40","date_gmt":"2022-09-12T14:11:40","guid":{"rendered":"https:\/\/villages.com.au\/?p=993"},"modified":"2022-09-21T03:33:02","modified_gmt":"2022-09-21T03:33:02","slug":"downsize-in-retirement-dont-waste-your-greatest-asset","status":"publish","type":"post","link":"https:\/\/blog.villages.com.au\/money\/downsize-in-retirement-dont-waste-your-greatest-asset\/","title":{"rendered":"Downsize in retirement: don\u2019t waste your greatest asset"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"993\" class=\"elementor elementor-993\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8145afc elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8145afc\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0fd2dd5\" data-id=\"0fd2dd5\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8e53aa7 elementor-drop-cap-yes elementor-drop-cap-view-stacked elementor-widget elementor-widget-text-editor\" data-id=\"8e53aa7\" data-element_type=\"widget\" data-settings=\"{&quot;drop_cap&quot;:&quot;yes&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.15.0 - 20-08-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>I<strong>f you downsize in retirement, you reduce home maintenance, increase cashflow and prioritise lifestyle. However, research indicates <em>only a small percentage<\/em> of retirees take advantage of downsizing. It\u2019s a real missed opportunity.<\/strong><\/p><p>In this blog, we\u2019ll explore why you should downsize in retirement and the risks of staying in the family home. We will also take a quick look at some common downsizing options.<\/p><p>Here\u2019s what we will cover:<\/p><ul><li><strong><a href=\"#why_downsize\">Why downsize?<\/a><\/strong><ul><li><strong><a href=\"#avoid_maintenance\">Avoid maintenance<\/a><\/strong><\/li><li><strong><a href=\"#access_equity\">Access equity and increase cashflow<\/a><\/strong><\/li><li><strong><a href=\"#prioritise_convenience\">Prioritise convenience<\/a><\/strong><\/li><\/ul><\/li><li><strong><a href=\"#popular_options\">Popular options to downsize in retirement<\/a><\/strong><\/li><\/ul><p>Hit the link and you\u2019ll be taken to the corresponding section.<\/p><p>\u00a0<\/p><p>\u00a0<\/p><h2><strong>Why downsize?<\/strong><\/h2><h3>\u2014\u00a0<strong>Avoid maintenance<\/strong><\/h3><p>As you age, the family home can become <em>harder and harder<\/em> to maintain. Before you know it, what once was a great asset becomes an overwhelming burden. This is especially true if you are an empty nester, have a backyard\/pool, or have an especially large dwelling.<\/p><p>Downsizing frees you from home and garden maintenance, leaving you with <strong>more time to pursue work and leisure<\/strong>.<\/p><p>\u00a0<\/p><p>\u00a0<\/p><h3>\u2014\u00a0<strong>Access equity and increase cash flow<\/strong><\/h3><p>Not only is it hard work, but the family home is also generally a retiree\u2019s<strong> most significant asset<\/strong>. As a result, your money is <em>tied up<\/em> in it and is inaccessible.<\/p><p>Selling, downsizing, and using leftover equity to make retirement more comfortable is a good option for those who feel they don\u2019t have enough money to retire on. It\u2019s also a great way to <strong>eliminate mortgage debt<\/strong> if you have any remaining.<\/p><p>\u00a0<\/p><p>\u00a0<\/p><h3>\u2014\u00a0<strong>Prioritise convenience<\/strong><\/h3><p>Rather than a downgrade, downsizing is a <em>reset<\/em>. It\u2019s a powerful opportunity to choose a new homewith your retirement in mind. It\u2019s very common to downsize to a single-level home with a floorplan that\u2019s easy to navigate.<\/p><p>Finally, think about proximity to public transport, shops, medical centres, health clubs and community centres. This is particularly critical if driving becomes difficult.<\/p><p>\u00a0<\/p><p>\u00a0<\/p><h2><strong>Popular options to downsize in retirement<\/strong><\/h2><p>Below you will find a quick summary of the most common options for downsizing in Australia. While the list is by no means exhaustive, it\u2019s a solid starting point.<\/p><p><strong><a href=\"https:\/\/villages.com.au\/nsw\/bondi\/lifestyle-manor-4000?minPrice=&amp;maxPrice=&amp;category=\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright\" src=\"http:\/\/www.getstaged.co\/site_1\/wp-content\/uploads\/2022\/09\/RL-Lifestyle-Manor-Bondi.jpg\" alt=\"\" width=\"350\" height=\"232\" \/><\/a>Apartments and townhouses: <\/strong>Relocating to a smaller dwelling near public transport and amenities is popular among younger retirees. It\u2019s all about lifestyle and flexibility.<\/p><p><strong>Retirement villages: <\/strong>These are small, well organised communities that thrive in both regional or more urban settings. Residents live independently, coming and going as they please.<\/p><p><strong>Land lease: <\/strong>Growing out of permanent dwellings in caravan parks, in a land lease you own your home but not the land it sits on. For use of this land, you pay weekly rent to your community operator.<\/p><p>Interested in downsizing? For a more in-depth look at your options, check out our <strong><a href=\"http:\/\/www.getstaged.co\/site_1\/lifestyle\/explained-your-downsizing-options\/\" target=\"_blank\" rel=\"noopener\">downsizing options blog<\/a><\/strong>.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Downsizing in retirement is a great way to reduce maintenance and increase cash flow. In this blog we\u2019ll explore the advantages of downsizing and your options.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","om_disable_all_campaigns":false,"_mi_skip_tracking":false,"footnotes":""},"categories":[71],"tags":[98,100,77,99,83],"class_list":["post-993","post","type-post","status-publish","format-standard","hentry","category-money","tag-apartments","tag-co-located","tag-financial-advice","tag-land-lease-communities","tag-retirement-villages"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/posts\/993","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/comments?post=993"}],"version-history":[{"count":25,"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/posts\/993\/revisions"}],"predecessor-version":[{"id":1357,"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/posts\/993\/revisions\/1357"}],"wp:attachment":[{"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/media?parent=993"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/categories?post=993"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/tags?post=993"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}