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A guide to downsizing your home

There are many reasons you may downsize your home. Perhaps your kids have left the nest, or you’re approaching retirement. Whatever the reason, reducing the size of your house could offer benefits such as:

  • profit from selling your home
  • reduced costs, and
  • a better lifestyle — say, if you decide to live closer to the beach or your family.

Whether you’re just considering downsizing, or you’ve already started planning for it, Apia’s range of Apartment Insurance and other downsizing policy options could suit you.

Steps to downsizing your home

Know why you’re downsizing

Consider the benefits downsizing will have for you. You might be selling because the housing market is strong and you want to build your savings, or maybe you want to move to your favourite spot. Identifying your specific downsizing goals — whether they’re financial or lifestyle related — will help you plan.

Start planning

Downsizing can present logistical challenges, but with careful planning and preparation, your move could be hassle-free.

While preparing, reflect on your needs. Your new home needs to suit your budget, level of independence and the lifestyle you’re hoping to achieve.

There are also costs to bear in mind, such as real estate agent fees, legal fees and stamp duty. You might also find it useful to think about how you’re going to pack and move your belongings — whether you’ll do it yourself, or need the help of professional removalists.

Be prepared to declutter

Chances are, downsizing will mean reducing the amount of stuff you have. Consider the items you can donate, give to family or friends, put into storage, or sell. As you’re going through this process, you may find it useful to create a home inventory for insurance purposes.

A home inventory is a list of all the items in your home, along with proof of ownership and details about their value. If your property is affected by an insured event like fire, flood or theft, a home inventory is a handy way of accounting for your things.

Remember, selling up and moving on isn’t easy to do — especially if you’re saying goodbye to a family home. Give yourself the time and space you need to grieve, take pictures and choose a memento or two to take with you. Don’t forget that change can bring about exciting new experiences and opportunities.

Downsizer contributions into super for over-65s

If you’re over the age of 65, you may be eligible to contribute up to $300,000 (taxed at a concessional rate) from the sale of your home to your superannuation. The Australian government announced this measure as part of the 2017-18 budget as a way of improving housing affordability.

Downsizing contributions into super can only be accessed once. For more detail, including eligibility info, visit the ATO website.

Don’t forget insurance

Your living situation should suit your needs, and so should your insurance. Apia has a range of options for downsizers, from Apartment Insurance — which provides coverage from events like fire, storms and theft for your contents, fixtures and fittings if you live in a multi-storey building — to Assisted Living and Village Insurance.

Plus, if you work less than 37 hours each week, you might be eligible to save on your premium with our Work Less Pay Less discount*.

Get a quote today

Not sure what’s right for you? Get in touch with one of our insurance specialists.

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*If you receive more than one discount, we apply each in a predetermined order to the already discounted premium (usually before adding taxes and charges). The discounts we offer are subject to change.

Work Less Pay Less® discount does not apply to optional covers Apia Home Assist, Excess-free Glass cover and Apia Roadside Assist.

Australian Pensioners Insurance Agency Pty Ltd (Apia) ABN 14 099 650 996 AR 239591 is an authorised representative of AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI), the issuer of Home, Landlord, Car, Caravan, Motorhome, Boat, Travel & Compulsory Third Party Personal Injury (CTP) Insurance.

Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available.

Any advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it.

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