DOWNSIZING seems like the perfect idea but are you really ready to trade in the family home for something a little smaller, writes KATRINA HAWSE
SELLING the family home seems like the perfect solution for many empty nesters.
Few retirees want to be rumbling around a giant house on their own and more importantly, the sale can boost superannuation funds.
But packing up years of memories sprawled out across many rooms and transplanting them into an apartment can be a daunting and emotional process.
According to the Australian Institute of Health and Welfare, most older Australians prefer to stay in the family home because of familiarity with the local community and services.
In 2011, there were three million Australians aged 65 years and over but this is expected to grow to six million by 2031.
So just when is it a good time to trade down to something a little smaller?
EMOTIONALLY PACKING UP
Counsellor Judy Boyland believes one of the biggest mistakes is to put off downsizing until the decision is taken out of your hands due to age or poor health.
But with moving house ranked only above the death of a family member in terms of stress, it is little wonder why so many people put it off to the last possible moment.
“It is recognised as one of the biggies,’’ Ms Boyland said.
“Whether you are forced to move or it is something that you choose to do, it is going to be a huge change and that means stress.’’
Preparation can start years before bringing home your first removal box.
Regular decluttering will cut down your possessions and means you won’t be overwhelmed down the track.
But more importantly, you need to start to mentally focus on the positives.
While it is not uncommon to feel nostalgic, try to keep your emotions intact and don’t get caught up in the drama of the move.
“You need to think one day I am “going’’ to do this, rather than saying I “need’’ to do this and that is part of your acceptance,’’ Ms Boyland said.
“The facts are it is just bricks and mortar and the more you can look at it as something that has served your needs the less it is going to be emotionally destroying.
“Sometimes facing a situation with cold hard facts can minimise the impact.’’
Recruit your children or other family members to help you sort through what needs to move with you and what can be given away.
If you need incentives to stay motivated, give yourself a small reward for every room cleared or every box packed.
FINDING THE RIGHT PLACE
While lifestyle is a primary motivator for downsizing, it doesn’t have to mean an unnecessary sea or tree change.
If you love your neighbourhood, then it is important to stay where you feel happy and content.
Relocating to a new area may be an exciting new chapter, but a report by the Australian Housing and Urban Research Institute found some empty nesters struggle to build new social relationships.
Tips for overcoming this include moving to an area with existing contacts, friends or family in the area.
Developing supportive or friendly relationships with neighbours and taking part in community events and groups can also help overcome any feelings of isolation.
FINANCIAL IMPLICATIONS
SELLING the family home can impact social security payments and it is important to fully understand the financial ramifications.
According to the Australian Securities & Investments Commission proceeds of any house sale is exempt for 12 months if you are planning on buying another home.
Any interest earned will be counted as under the income test.
If you plan on purchasing a cheaper home, the surplus money could affect your pension.
If downsizing to an apartment ensure you understand the strata payments and commitments before purchasing.
