Downsizing 1 - Challenges
The number of Australians aged 65 years and over is forecast to more than double during the next 40 years, reaching 8.9 million in 2054-55. Yikes! Where are we all going to live?
As a nation, we need to start thinking hard about increasing the living opportunities for our increasingly top-heavy population. I am really invested in this issue (since it will directly affect me before too long) and I plan to contribute to the solution but for now we need to work with what we’ve got.
So, what ARE the current options for retirees, empty-nesters or for those that just want to simplify there life?
What do you need to know to navigate the downsizing journey?
And how do we make it less stressful?
I will tell you one thing - it’s much easier to stay at home in your big comfy armchair (the downsizing equivalent of burying your head in the sand) - than to contemplate downsizing. However, you are still here reading this and for that I congratulate you. So, let’s keep going.
What are the challenges you are facing right now when it comes to downsizing? Make a cup of tea and have a think about it. Write them down.
I’ve been privileged to work with lots of clients helping them through the downsizing process and I have been able to observe common concerns and challenges. It’s important to know that you are not alone and the type of challenges you are facing are the same for many.
They can be broken down into four types. Practical Challenges, Emotional/Mindset Challenges, Financial Challenges & concerns about the future.
|
Practical |
Mindset |
Financial |
Future |
|
Deteriorating state of current property |
Depressing |
Financial cost of employing home help |
Limited living options out there |
|
Getting harder & harder to maintain |
Its stressful not being able to maintain property |
Increasing energy costs |
Unit? Over 55s? Retirement Village? Smaller block? Aged Care? |
|
Style of home is old fashioned and doesn’t suit me anymore |
Don’t want to change |
Costs of moving |
Changes in government |
|
Garden is getting too much |
Feel stuck |
Will I be better off if I downsize? |
Changes to pensions and super |
|
Don't have help to get house ready to sell |
Don’t have the energy or motivation |
Want to make sure my family is looked after. |
Lots of unknowns |
|
Not physically able to pack |
Feeling the pressure from family |
Need to increase cash flow - asset rich/cash poor |
Uncertainty in the housing market - will the bubble burst |
|
Too much stuff |
Overwhelmed by it all |
What about stamp duty? |
How long do I have? |
|
Not physically able to pack |
Distrustful of estate agents |
Will my pension be affected? |
Will I have to move out of the area? |
Are these similar to ones on your list? What categories do your concerns fall into. Are your challenges more in one group or another. This will help you identify where you need to focus your energy in making the decision about whether downsizing is right for you.
My goal is to help you transform your ideas about downsizing, help you feel more positive about your future and emboldened to take control of your situation knowing what your options are. In the process, I’d also like to transform your ideas around what to expect from a real estate agent.
You may end up deciding that selling your current home and downsizing isn’t for you. And that is ok too. In fact, that would be splendid because you can put that nagging feeling that you SHOULD downsize to bed and just get on with enjoying your life.
This is all about your comfort. Your security. Your future. What is best for you.