Making the decision to move away from the family home and downsize can be emotional, both for retirees and their kids. Once they’ve made their decision, it’s critical to ensure vendors retain as much of the equity released from the sale as possible. Colin Keating, CEO of leading Australian real estate disruptor, buyMyplace has a few critical considerations to consider before taking the downsize plunge:
- Location – tree change, sea change, closer, or further from family. Where will you move too?
- Financial situation – how are you financing the move, what income streams are you dependent on? Can equity released be used to pay down a mortgage?
- What do you really want? Are you after something smaller, or just easier to maintain? Does it need to be detached, or can you consider a town house or unit?
- What’s your property worth? Get a realistic and independent valuation – this means not from someone trying to get your business, i.e a real estate agent.
- Declutter. Buyers need to be able to see themselves living there (and room for their own junk!) Remember, when downsizing, you’ll need to fit the all your things in less space!
- Consider how you are going to sell – Will you use an agent or do it yourself? With an average of 3% commission on a $600,000 sale price, this could cost as much as $20,000. Keep as much of that released equity as possible for that cruise, holiday or caravan!
- Look for your new home – now you have your ducks in a row, you can get excited about moving into a new area. Look at recent sales data in your chosen area, or even buy a suburb profile report.
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