The end of your working life is the beginning of a whole new adventure. Are you ready for it?
Planning for a successful retirement starts with asking a few questions, including:
- How much money do you need for a comfortable retirement?
- Do you need to downsize?
- Where do you want to live?
- What would you like to do in your retirement years?
For many people, downsizing in retirement will almost certainly factor into the equation and that leads to more questions. We’ll help you answer a few of them here.
When Is the Right Time to Downsize?
That’s a question only you can answer.
However, there are a few signs that might help you figure out when it is the right time to sell the family-sized home and move into something more in keeping with the lifestyle you want to lead in retirement.
It might be when the kids have all moved out of home or when you’re sick and tired of spending every spare moment keeping up with the house and garden.
Whenever that moment is for you, make sure you do your research to fully understand all the retirement living options because they’re not all created equal.
Learn more about the four types of retirement living in Australia here.
What are the Benefits of Downsizing in Retirement?
Many Australians over 50 are using downsizing as an opportunity to maximise their retirement lifestyle opportunities.
A 2020 survey by the Australian House and Urban Research Institute reveals that 26% of Australians over the age of 55 have already downsized and another 29% are considering it.
It might surprise you to learn that 30% of people aged between 55 and 64 are considering a downsizing move too.
And why not? There are some great reasons why this could be the right move for you.
Intriguingly, the most common reason this age group cited as their reason for looking at downsizing was for lifestyle reasons.
Let’s break it down.
Lifestyle
If you are over 50 and retired (or not working full time) and no longer have financial responsibility for the children, then quite naturally the focus turns to leisure and lifestyle.
Downsizing to an active over-50s lifestyle resort in a desirable seachange or tree change location gives you the opportunity put all the things you like to do front and centre.
And a quality lifestyle resort like GemLife offers exceptional facilities on site which you can enjoy a range of activities during your retirement, and develop new friendships with like-minded people.
When Debra from GemLife Maroochy Quays and her husband planned a cruise holiday, they quickly discovered that they were not alone.
“While I was swimming in the pool the other day, I found out more than 20 other residents from GemLife Maroochy Quays were booked on the same cruise so it’s going to be a fun trip. We’ve called ourselves The Gemmies,” she said.
Read more about Debra and Keith’s story and their experience at GemLife Maroochy Quays here.
There’s Less Maintenance
A brand-new home that is ‘rightsized’ gives you more time for leisure and entertaining family and friends. And, if you don’t have to worry about garden maintenance or servicing the swimming pool, then so much the better!
For Brian and Pauline, the big decision to downsize and move into a beautiful new home at GemLife Palmwoods over-50s lifestyle resort was anything but difficult.
“We knew the time was right and although we had amassed more than our fair share of possessions and faced a big job to get rid of everything, we were also keen to break away from the ongoing maintenance and upkeep of a big property including extensive hillside gardens which I worked on each and every day. I just didn’t want to do it anymore,” said Brian.
GemLife homes have been designed to be luxurious and low maintenance with integrated European kitchen appliances, plenty of storage, a double lock up garage, solar and ducted air conditioning as standard.
Read more about Brian and Pauline’s downsizing experience here.
It’s Convenient
Imagine your local gym – complete with indoor heated lap pool – was a short walk from your front door. And that an evening out with live entertainment and a game of ten-pin bowls, or a movie night followed by a catch up with friends at an exclusive lounge bar was right on your doorstep.
What about the ability to use the car a little less so you could actually walk to the local shops to pick up a few grocery items?
Downsizing to an over-50s lifestyle that is convenient to the services and amenities you need most is well-worth considering, especially if it is also near to family and friends.
Christine, who lives at GemLife Highfields, enjoys the fact that everything is so handy.
“The homes I saw (at GemLife) were absolutely beautiful and as a solo woman, I like the idea of a secure community, especially one that’s so close to everything I need,” she said. “I can take my dog and walk to Highfields shopping centre and go to the newly built library, not to mention walking all around the resort.”
Read more about Christine’s story here.
You Can Increase Your Cash Flow
In the Australian House and Urban Research Institute survey, financial reasons ranked first with those between 55 and 64 who were considering downsizing.
This move gives you the opportunity to unlock the equity from your family sized home which frees up capital that can be used to help turbo charge your superannuation and fund your retirement to create the lifestyle you want.
In a land lease community like GemLife, you also get more home for your money because you are not paying for the land that it sits on. A modest weekly site fee covers the rent on the land and the maintenance of the five-star resort facilities taken care of by on-site resort managers. It’s one of the many reasons why lifestyle villages are worth the investment.
In addition, buying a home in a GemLife resort doesn’t attract stamp duty which also saves you thousands of dollars.
Everyone’s financial situation is different, so consider your individual circumstances and seek professional advice before deciding.
Lower Bills
Unfortunately, bills are a fact of life. But one of the benefits of downsizing to an over-50s lifestyle resort is discovering that everyday bills are much lower.
GemLife homes are built to be energy efficient which means it costs far less to cool in summer and heat in winter. In addition to the latest energy efficient appliances installed as standard, our homes also come with solar panels installed as standard to further reduce power bills.
In 2023, rolling out across all GemLife resorts is the Australian-first Virtual Power Plant, which stores excess energy generated during the day in batteries to use when the sun goes down. Smart meters in each home monitor the power usage. Some homeowners report their electricity bill is effectively $0!
Other costs are also reduced when living in a lifestyle resort.
Homeowners report using their cars a lot less because luxurious sporting and leisure facilities are right on your doorstep – imagine no longer paying for a gym membership or spending a lot of money on a night out at the movies followed by drinks with friends.
What Do I Need to Know Before I Downsize?
It is so important do your homework before you commit to downsizing. Unfortunately, people make assumptions about downsizing and retirement living, unaware of the hidden costs that come with some over-50s residential options.
Unfortunately, people make assumptions and mistakes when they choose to downsize.
But let’s look at some more.
Consider the Cost of Moving
There is a lot to consider before making the decision to downsize.
One of the most important is understanding the difference between retirement villages and over-50s lifestyle resorts like GemLife.
In land lease communities like ours we have financial transparency and two very simple contracts:
- The purchase of your home, which you own, and
- The weekly site fee which covers the maintenance of the facilities
Retirement village contracts are much more complex and include a greater range of fees, including:
- Entry fees
- Exit fees
- Deferred management fees
- Refurbishment fees
- Maintenance fees, and
- Capital gains fees
Emotional Connection
Downsizing is not just buying a smaller house – it’s about somewhere you’ll call home for years to come.
That’s why it’s important to consider the lifestyle you want to lead. Do you want more time with family? How about regularly entertaining friends? What about a yen to travel and not hurry back home? Are there hobbies that you want to devote more time to?
What about being nearby to family and friends? Is the place you choose welcoming to pets and having your grandchildren stay over with you?
Another question to ask is where you would like to move? Are you looking for a seachange or a tree change?
These are all personal questions, and the answers need to resonate with you.
What about the homes and the resort itself?
Many GemLife homeowners describe their first visit to the resort as ‘love at first sight’ and knowing that they’ve found just the location, lifestyle and community they wanted.
When it comes to making a downsizing decision, it is just as important to use your heart as well as your head.
It’s a Big Change
It’s okay to acknowledge that downsizing is a momentous change – especially if you’ve been living in the same home for many years.
Carefully consider all the pros and cons of a downsizing move as you consider your plans for the next 20 years, considering the lifestyle you’d like to lead. Make sure you look for financial and legal advice, so you have the right information to make the best decision for you.
Learn more about downsizing for pensioners here.
Why Consider GemLife When it’s Time to Downsize?
GemLife offers outstanding over-50s lifestyle resorts and some of the most sought-after downsizing locations in Australia.
With a focus on high quality, active and engaged living, GemLife delivers master-planned communities with exceptional recreational and leisure facilities together with high-quality modern and stylish homes.
For more information, reach out to our specialist team or request an info pack.
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