Market Upswing Boon for Downsizers

Australian property continues to record value growth as the year gets into full swing, offering an opportunity for sellers to capitalise on the upbeat mood.

The decision by the Reserve Bank of Australia to leave the cash rate at 4.35% is a significant sign, creating the possibility that buyer concerns about mortgage costs will now ease.

In a sign of growing market confidence, CoreLogic estimated that 115,241 dwellings in sold in Australia over the three months ending January, which was 11.9% higher than the same period last year.

While these results indicate the overall market performance, it is important to also talk to a trusted real estate agent to find out local sales data and information.

Predictions of interest rates cuts from mid-year may encourage buyers into the market and help sellers maximise property sale prices.

Current market conditions may also favour downsizers seeking to sell the family home and move into a smaller house or apartment.

These Top 3 tips may help if you are considering downsizing this year.

Lifestyle

The decision to downsize is often the last major property decision you will make. So, take care in getting it right. Prioritising your desired lifestyle in retirement is critical to the success of downsizing. For example, a secure apartment is a great option if you want to travel a lot.

Money

Many downsizers hope the surplus cash from selling their family home and buying a smaller property will finance their retirement. If that's you, then make sure you run the numbers carefully. Talk to your financial adviser or accountant to ensure you achieve the correct result.

Neighbourhood

Choosing the right location is critical to the success of your downsizing decision. If health is a concern, ensure you have easy access to a hospital and other health-related services. You may also want to consider recreational activities and easy access to shops, cafes, restaurants and movie theatres.