To sell or not to sell?
When it comes to the family home, this question can be one of the toughest to answer. And arguably at no time is the decision to sell the family home harder to make than when your kids have moved out and you find yourself (whether it’s just you or you and your partner) in an ’empty nest’ situation.
There are two main constraints when it comes to selling the family home – emotional constraints and financial constraints.
For most of us the family home is filled with memories. Every wall has an abundance of tales to tell. Is it any wonder then that we become emotional at the thought of leaving all that behind? Packing and sorting through a lifetime of possessions isn’t easy. Some find this so challenging in fact that they wait until the financial constraints kick in before they do anything about it.
Many older people also worry about moving away from family, friends and the area they are familiar with.
For older Australians who are no longer working, there can be some major financial hurdles that deter them from even thinking about selling the family home and moving. For instance, after selling, pensioners may lose some (or all) of their age pension as the family home is exempt from the pension assets test. The equity unlocked on the other hand is not. Furthermore, pensioners are taxed for the cash released upon selling the house.
The good news
The 2017 Federal Budget announcement last year to change Superannuation rules will open up more opportunities for retirees.
Because from July 1, 2018 (when the changes come into effect) people over the age of 65 will be able to put the proceeds of the sale of the family home (as long as the property has been owned for at least 10 years) into super, at a maximum of $300,000 per person.
That means that a couple could put $600,000 into super. As a result, it eases the tax headaches that currently go hand in hand with selling a home at such a financially crucial stage of your life.
If you are interested in exploring this option, now is a good time to start planning in advance.
We can help you put a plan in place now for selling your property when this new ruling comes into effect by doing the following:
- Prepare a Comparative Market Appraisal on the value of your property.
- Give you ample time and advice on downsizing your belongings if you anticipate moving to a smaller home.
- Give you advice on how to present your property for sale to achieve the best result.
- Provide details of tradespeople to help with any painting, electrical, gardening or other odd jobs to prepare your home for sale.
- Use our 19+ years’ experience as one of the top selling agents in the region to provide you with a comprehensive marketing strategy for your home in order to achieve the highest price.
If this service is of interest to you, contact us and we will be more than happy to call out and see you at a time that suits you (all at no obligation whatsoever).