As a result of COVID-19 and the rising unemployment rate, many Australians have questions about their retirement and savings, especially whether it’s a good idea to downsize your home right now.
AMP Capital senior economist Diana Mousina and financial adviser John Dani discuss downsizing your home in the current state of the residential property market.
Watch for an outlook on Australian property prices, the main reasons for selling your home and downsizing, and the key factors to consider before moving house in favour of a smaller home.
0:39 – The Australian property market is set to fall over the next six to 12 months due to the wider market downturn as a result of coronavirus
1:19 – How to assess whether it’s a good time to sell your home and downsize, with an understanding of the cost of moving to a smaller home
2:05 – Reasons people may choose to downsize. These include to help save extra money, to boost their retirement income, and lifestyle factors such as better proximity to family and friends
2:51 – There are three considerations to think about before downsizing to a smaller home. They relate to the hidden costs of moving, your age pension entitlement, and having a clear plan for the extra money gained from downsizing.
4:18 – If you’re aged over 65 and you’ve lived in your family home for 10 years or more, downsizing contributions can help boost your retirement income streams.
5:02 – Summary of the key factors to consider before selling the family home and downsizing.
Find more information and expert tips on downsizing your home before or during retirement: https://www.amp.com.au/retirement/prepare-to-retire/downsizing-your-home
Original Author: Produced by AMP and published on 04/06/2020 Source