• Is that spare bedroom getting cluttered with junk driving you mad?   
• Does that dated bathroom and kitchen look like they could be expensive to renovate?
• Will you ever get around to all those minor repairs that need to be done – and do you really want to?
• Is the yard that was once a playground for your kids now a large space that requires constant gardening and attention? 

If you answered yes to any of questions it might be time to downsize and the New Year could be the time to start the move. 

Of course, it’s not simple. There are many considerations:

• The area you want to move to, or remain in
• The type of home – a small house, an apartment, a retirement community
• Family proximity 

Along with the ‘lifestyle’ decisions, equally important are the financial ones. In the current environment of falling property prices across most of Australia, you may not receive the price you hope for your current home but, on the other hand, you might be able to buy at a lower price. 

When you’re calculating your figures, don’t forget to take into account the costs of buying and selling. These can include the real estate agent fees, conveyancing fees and removalist costs on the selling side plus stamp duty, mortgage registration and transfer fees on the buying side.  Calculators are available online to help you plan.

Top up your super

If you’re over 65, and meet the eligibility requirements there’s a new incentive to downsize and contribute to your super. 

You can contribute up to $300,000 individually, or $600,000 for a couple, into your super. Importantly, the contribution doesn’t count towards your contribution caps and can still be made even if you have a total super balance of more than $1.6 million. It doesn’t matter if you’re still working or have retired or if your pension is already in the pension phase. 

Thinking about taking advantage of the downsizing incentives?

For advice on how it works and what you need to do contact the TelstraSuper Financial Planning team on 1300 033 166 or fill out the online contact form.

Find out more

• Here’s more information on how downsizing contributions work
• The Australian Taxation Office website also gives further details
• Here’s some other things to consider
• If you’ve recently downsized and you’re eligible you can make the contribution using this form