Downsizer buyer guide

Making the decision to downsize your property is a big step for any home owner. Whether your
lifestyle has changed or you are looking for something more manageable after the kids have flown the coop, we can help you navigate that transition.

 

While many downsizers have been through the home-buying process before, deciding to
downsize can bring a whole new range of considerations, including whether to sell your current home, how to accommodate lifestyle changes, moving to a new suburb or state and choosing a financial model that is compatible with your current stage of life.

Why you might consider downsizing:

01

You want a smaller property that is easier to maintain.

02

To reduce utility, maintenance and mortgage costs.

03

Circumstances have changed and your current home isn’t suitable.

04

You want a new financial model that is more compatible with where you’re at.

Budgeting and finances

When it comes to budgeting for your next home it’s best to reach out to your Flint broker as soon as possible. Having these conversations early on can help you understand what financial model will be most suitable for your lifestyle (particularly if your work status is changing) and if you need to sell your current home or can hang onto it as an investment.

Selling your home

Pros

  • Finances will be freed up to purchase a more expensive home.
  • You won’t be servicing multiple loans.
  • No need to worry about managing an investment property.

Cons

  • No investment property, and therefore less capital growth.
  • The emotional aspect of saying goodbye to your old home.
  • There are costs associated with selling your home, including Capital Gains Tax (CGT).
  • The proceeds from the sale could affect your eligibility for government benefits. Visit Services Australia for more up-to-date information or ask your Flint broker how this could impact you.

Downsizing can be a long process so it’s best to get started early. If you’re planning to sell your current home, it’s a good idea to have it valued so you know what you can afford to buy next.

 

Investigate any government downsizing incentives or schemes available to you. A Flint broker can advise what financial opportunities are applicable to your unique situation.

 

While a full renovation is not usually necessary, it’s a good idea to have your home looking inspection-ready. Fix up any issues that need tending to, consider repainting the interior and get your garden looking as good as possible.

 

Don’t forget there are costs involved with selling your property. These may include marketing, agent fees, conveyancer/solicitor fees, styling, auctioneer fees and CGT. You will also need to keep the property in pristine condition while inspections are taking place or vacate your home for the campaign. In the latter case, you will need to factor in the cost of a rental or short stay accommodation.

 

Once your property has sold, you will need to lodge your discharge of a mortgage. During settlement, your conveyancer/solicitor and your lender will be present to organise any funds to be repaid to your lender. This discharge of the mortgage will then be lodged with your local land titles office to prove you do not have an interest in the property anymore.

Keeping your current home as an investment

Pros

  • You will have an investment property, and therefore a bigger portfolio.
  • Rental or short stay/holiday accommodation returns.
  • The opportunity to claim tax deductions on your rental.

Cons

  • Potentially being limited on what you can spend on your next property.
  • Managing and servicing multiple loans.
  • The responsibility and costs of managing an investment property.

If you’re not quite ready to sell your home, you could consider keeping your current property as an investment. This will allow you to potentially benefit from rental income, which could contribute to mortgage repayments and operational expenses of the property – leading to positive gearing.

 

Retaining your original home as a rental property also introduces a new source of income and diversifies your financial portfolio. However, it’s essential to determine if this strategy is feasible and the most beneficial for your circumstances and stage of life. A Flint broker can help you understand the pros and cons of this option.

Choosing the right property

There are many reasons to downsize your property, maybe your children have left and you don’t need the extra space anymore or you want something more manageable and financially sustainable.

Whatever the reason, it’s important to carefully consider a few key factors in your property search. Location should be one of the most important aspects of your search and there are a few essential questions to consider: Do you want to live near family and friends? What kind of local amenities are important to you, and do you need them within walking distance? And lastly, are there any lifestyle changes you need to consider when choosing a suburb?


Next, you should think about what kind of property would best suit your current and future needs. Do you want a smaller house with a maintenance-free outdoor space or would an apartment or unit be better suited to you? If you’re moving from a large property, are you planning to declutter or do you need somewhere with good storage options? Do you want a
modern property equipped with smart technology that won’t need much maintenance or are you happy to have an older property that might need touch-ups every now and then?


Then there’s the key features of the property. Do you have any physical concerns that might make stairs difficult? If you’re going to have family come and stay, how many bedrooms do you require? What kind of technology or mobility features would you like the home to have?

 

Researching homes on a property portal such as view.com.au can be a great place to start. Another good idea is to attend inspections and auctions of similar properties in suburbs that you are interested in to see what they sold for. You can also save properties in your property portal app and the track results.


If you’re planning to buy in a different area, visit regularly and spend time in the local neighbourhood to make sure it’s a good fit.

Buying your next home

Similarly to when you purchased your previous home, you need to make sure you have all your financial ducks in a row when it comes time to downsize. Speaking with a Flint broker will ensure you are organised and ready to put in an offer or bid when your dream home hits the market.

If you come across the perfect property and your current home hasn’t sold yet, you can put in a subject to sale offer. This means that the offer is subject to the sale of your current property and the sale won’t go ahead until it has sold. This is not possible for properties sold through an auction process.

 

A bridging loan is another option that may help alleviate the stress of selling and buying a new home. You can apply for a bridging loan if you are ready to make an offer on a new property, but haven’t yet sold your current home. A Flint broker can advise whether this option is appropriate for your situation.


If the thought of trying to sell and buy at the same time feels stressful for you. Consider selling your home first and look to buy later. Not only will your funds be readily available when you find your dream home, but you won’t be rushed into purchasing something in a short window of time. However, you should be mindful that not buying and selling in the same market could mean rising prices and interim housing costs.

Conveyancing and settlement

Since you’re upgrading, conveyancing and settlement will not be foreign concepts to you. What may prove challenging, however, is trying to coordinate settlements of your current and new properties.

If you’re selling your current home, and are looking to purchase another, you may want to try and organise a simultaneous settlement. This process means settlement for both transactions will occur on the same date. This can be tricky to coordinate so it’s wise to seek assistance from your conveyancer or solicitor.

If you’re ready to downsize, book your free consultation with Flint today. Get clear guidance and smart mortgage solutions to secure the next phase of your life.

BUYER/FINANCE GUIDE FORM

CONTACT FORM

CONTACT FORM

CONTACT FORM

CONTACT FORM

CONTACT FORM

CONTACT FORM