Downsizing? Read this first

How much space do you need?

Location, location, location

What amenities do you need?

Think about future-proofing your home

There may be tax and pension implications involved.

From January 2023, the ATO (https://www.ato.gov.au/individuals/super/growing-your-super/adding-to-your-super/downsizing-contributions-into-superannuation/) allows those over 55 to contribute up to $300,000 ($600,000 for couples) from the sale (or part sale) of their home into their superannuation fund. For those on an Age Pension, it is important to consider the implications (https://moneysmart.gov.au/retirement-income/age-pension-and-government-benefits) of downsizing.

While your residence is not included in the assets test, the difference between the sale of the old and new properties will be considered and may reduce your weekly pension. It is always important to seek legal or financial advice before making any decisions.

We know it can be difficult to decide what to do with the family home. It is filled with memories and can be hard to let go. It is important to make an informed decision, so do your research, speak with family and friends, and seek legal/financial advice as the first steps on your downsizing journey.

Source: https://reiwa.com.au/news/downsizing-read-this-first/