Downsizing to Retire Earlier
Planning for retirement usually starts with financial considerations. Deciding when and where you want to retire will be guided by how you position your finances.
The sale of the family home can be a great way to secure your retirement nest egg, especially with the introduction of downsizer contributions into your superannuation, offering a generous financial incentive to downsize. Master planned communities like Solana Bribie Island and 1770 Agnes Water, set in stunning coastal locations, can also make the decision to downsize easier than ever!
From 1 July 2018, if you are 65 years old or older and meet the eligibility requirements, you may be able to make a downsizer contribution of up to $300,000 from the proceeds of selling your home. If you or your spouse have owned a home in Australia for more than 10 years and have not previously utilised the downsizer contribution, you may be eligible. An added benefit is that these contributions do not count towards your concessional or non-concessional contribution caps, and as a couple, you could be eligible to contribute $600,000, as long as the amount does not exceed the proceeds received from the sale of your home.
With the current real estate market, this is the perfect time to consider downsizing and take advantage of the financial incentives. A faster sale, for more money, can get you closer to your retirement goals earlier than expected. Increase your super, retire sooner! Other benefits to downsizing include the opportunity to free up your cash flow, which can allow you to pay off your mortgage, invest, or finally splurge on something you’ve been putting off.
Choosing to downsize to Solana Lifestyle Resorts offers all the benefits of a smaller home, without compromising on lifestyle and amenities. Generally, a smaller home generates lower insurance and utility costs, as well as less maintenance and upkeep, all added advantages to living the Solana life. Now with two gorgeous coastal locations to choose from, it’s easier than ever to stay close to family. Solana Resorts has a variety of new homes for residents to choose from, making it easy to find the best solution to suit your individual needs. Location, community, and lifestyle. Just a few of the great reasons to call Solana home!
For more information, please visit ATO.gov.au