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Your step-by-step downsizing guide$6.95

Should youdownsize in 2o16?

January 2016

YourLifeChoices Should you downsize in 2016? January 20162

Contents

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Is downsizing right for you? 3 To downsize or not, that is the question

Financial pros and cons of downsizing 4 Will it help your cash flow?

Your downsizing timeline 5 Our 12-month timeline will keep you on track

How to downsize your debt 6 Can you leverage your home to reduce your debt?

The practicalities of moving home 8 Addressing these practical aspects will help you make savvy decisions

The emotions of downsizing 9 There’s more to downsizing your home than just the finances

Choosing the right type of property 10 Which type of home will make you happy?

Centrelink implications of selling the family home 11 Will selling affect your eligibility for an Age Pension?

Granny flats – Centrelink rules 12 If you’re going the granny flat option, these are the rules to know

Noel’s top five retirement village tips 13 Consider Noel Whittaker’s advice before moving into a retirement village

Retirement villages – what can go wrong? 14 Gerard Brody reveals the potential traps of retirement villages

Your moving checklist 15 Our checklist will make moving house an easier task

Resources 16 Five useful resources at the click of your mouse

should you downsize in 2016?

YourLifeChoices Should you downsize in 2016? January 2016 3

Is downsizing right for you?I n the recent YourLifeChoices ‘Budget and

Retirement’ survey, a substantial 37 per cent of our members have stated that they are considering

downsizing their current home. A further 12 are thinking about taking out a reverse mortgage, and nine are thinking of taking in paying guests.

Even if only half the respondents go ahead and sell, this is a massive trend with wide-ranging implications for the Australian property market, as well as the lives of the individuals involved. You only need to look around your own suburb to see the ‘for sale’ signs and removal vans to realise how many locals are making this move.

It’s becoming a luxury in retirement to own your own home outright, and it can be very tempting to cash in on some of that value in order to increase your retirement income.

But if you have lived happily in that home for a long time, there are many other aspects to consider, starting with the emotional aspects of this decision.

Other non-financial reasons for selling may be related to the size of your home, the surrounding garden and your ability to clean and maintain it. Or perhaps you are ready for a fresh start in a different, ‘buzzier’ neighbourhood with cafes and cinemas at your door – or even a more tranquil sea or tree change? You may even wish to up the stakes and move to be closer to family, including any long-awaited grandchildren.

If your needs are purely financial, you may wish to consider ways to downsize your debt, instead of your home, as explained by Debbie on pages six and seven.

If it is the home that’s to be sold, then understanding the Centrelink implications, particularly in terms of your Age Pension eligibility, is critical. Currently the family home is exempt from the assets test, so it is important to not free up cash, only to lose a pension.

And knowing the tips and traps associated with a move to a retirement village complex will ensure you are wise upfront about any ‘hidden’ fees or obligations.

Whatever your reasons may be to downsize in 2016, this is a BIG decision, best taken slowly, after you have researched all your options. YourLifeChoices’ step-by-step guide to downsizing in 2016 will help you to make the choice that’s right for you.

Do you think you have/will have sufficient income to lead a reasonable

retirement lifestyle?

NO46%

Will you use your home as a financial asset in retirement?

By Downsizing

Taking in paying tenants/guests

Taking out a reverse mortgage or equity release

loan

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

yes54%

Yes No

YourLifeChoices Should you downsize in 2016? January 20164

Financial pros and cons of downsizing

To downsize or not, that is the question. Perhaps these financial pros and cons will help you come to a decision?

Let’s be honest, the reason most of us consider downsizing is to better our financial position. With so much of our capital tied

up in the family home, it makes sense to release it and give yourself some extra cash to improve your standard of living. But before you rush off to put your house on the market, here are some of the financial pros and cons you should consider.

Enjoy a smaller homePro: A smaller home often means less money spent on maintenance.

Con: You may have to spend more to buy your home than anticipated, especially if it’s of the type property that’s sought after.

The chance to try before you buyPro: Releasing the capital in your home – especially when the market is buoyant – and renting in the area in which you’re keen to live, will give you a real sense of whether or not it’s truly where you want to be.

Con: Renting can cost more than paying a mortgage, and you may find that when you come to buy, you no longer have the savings required to do so in the neighbourhood of your choice – or that the market has increased considerably and is therefore unaffordable.

Gaining more disposable incomePro: Having the extra cash on hand for emergencies, or even some of life’s little luxuries, is comforting.

Con: The more money you have, either in income or assets, the smaller an Age Pension you will receive – in fact, you may find you receive none at all.

Downsizing debtPro: More Australians than ever are heading into retirement with a mortgage and considerable amount of debt. Releasing the capital in your home can help you reduce your debt and you can possibly even become debt-free in retirement.

Con: When you factor in the costs of buying and selling a home, such as agents, legal and removalists fees, as well as stamp duty, this can considerably reduce the amount of money you have to pay off your debt. You may even find that the proceeds from your sale are simply not enough to cover the full amount you owe.

Diversifying your investmentPro: There’s no denying that your home is your greatest investment and with continued speculation about the strength of the Australian property market, it may make sense to look at alternative ways of making your money work for you.

Con: Any investment comes with risk, and if you haven’t received the correct advice, you could find your nest egg drastically reduced.

Disclaimer: This information is general in nature and has been prepared without taking into account your objectives, financial situation or needs. Before making any decision based on this information, you should seek professional advice.

YourLifeChoices Should you downsize in 2016? January 2016 5

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Your downsizing timelineDownsizing your home is a major project that requires time, focus and attention

to detail. Our 12-month timeline will help you keep on track.

Downsizing your home takes considerable time and effort: from the initial decision to moving day can take 12 months or more.

As careful deliberation is needed to get it right, our 12-month timeline will assist with your planning and goal setting.

Twelve months before• Decide what type of lifestyle you want – sea

change or tree change? Or do you want to stay in the area you know?

• Consider the type of house you want – town house, apartment, bungalow, unit or a property in a retirement village.

• Talk to family about your plans – it will make the process easier if you’re all on the same page.

• Create a list of pros and cons, and give each a score out of 10 – then do the maths to ‘see’ which side wins, free of emotional baggage.

Nine months before• Start to get your home ready for sale by

clearing your clutter. • Make sure your finances are in order – work out

how much you can afford to spend on a home, and, more importantly, what it will cost for you to move.

• Keep all your paperwork in order and easily accessible – and make copies to store safely with someone you trust.

• If you’re planning to move to a specific retirement village, you should start making enquiries now, as you may have to join a waiting list until the right unit becomes available.

Six months before• Undertake the jobs that need to be finished before

your home is sale ready.• Do your homework on the area in which you want

to live – find out typical sale prices for the type of home in which you’re interested, and the type of buyer who is looking for such a home.

• Talk to your financial advisor about the best way to structure your finances for your move – e.g. if you need to have a deposit before the sale of your home goes through, you may have to release some equity in your current property in the short term.

• Start to interview agents and consider your sale strategy. If you’re hoping to have a 90- or 120-day settlement, now is the time to get this right.

• Consider renting a storage unit or use your garage to store any furniture and personal items that are not needed – so your home looks its stylish best.

• Spruce up your garden and replace any plants that have seen better days – and trim hedges and trees so they’re neat and tidy.

Three months before• Hopefully your sale is finalised and you are now

securing your new home – so shortlist your favourites and start making offers or attending the auctions.

• Start packing up your home or select a removalist to do it for you – remember to check accreditation, insurance and references.

Now you’re ready to move, and to make it go as smoothly as possible, why not use our handy moving checklist?

YourLifeChoices Should you downsize in 2016? January 20166

Australians are carrying a significant amount

of debt into retirement.

Forget the house – downsize your debt first!

The stark reality for Australians entering retirement is that repaying a level of debt is fast becoming the norm. So, what’s the best way for you to

downsize your debt?

A reported 37 per cent of older Australians are carrying a significant amount of debt into retirement, although that percentage may be

a lot higher. But it’s the amount of debt that may be the most surprising. According to the 2012 report on behalf of CPA Australia, Household savings and retirement, the levels of household debt in 2010 for those aged between 60 and 69 was $117,000 for those not yet retired and $50,000 for those who are retired.

So, what do you do when faced with paying down debt on a limited or fixed income? Here are some strategies you may wish to consider when entering retirement, depending on your individual financial circumstances.

Moving homeBy downsizing your home, you may be able to release capital that can be used to clear your debt, as well as moving to a home that costs less to maintain. However, it’s not a one-size-fits-all solution and there are several costs you will need to consider before making the move.

For example, in Victoria, the median cost of a house in metropolitan Melbourne in the June 2015 quarter was $706,000, and the cost of unit in the same period was $520,000. At these prices, you could potentially release $186,000 by selling the family home.

The costs involved in selling your home for $706,000, including agent’s fees, advertising, legal and removal costs, would be approximately $26,000.

The costs involved in buying a $520,000 unit would be approximately $25,000, including stamp duty.

So, before you’ve even seen a cent of the money from your home, it will cost you somewhere in the region of $51,000 – suddenly that $186,000 profit may not seem so attractive.

A reverse mortgage, which is the most common form of equity release, allows you to access equity in your home without having to make repayments. The amount you have borrowed, plus interest accrued, will be payable when you sell your home or die.

While this may initially seem like the answer to all your debt worries, as with every financial transaction, there are risks involved, such as:• interest rates are often higher than average home

loans, and can rise considerably over the period of the loan if a variable option is chosen

• a fixed interest rate agreement can be expensive to break

Equity releaseBy utilising an equity release product, you can remain in your home while accessing some of the capital that you may have built up over the years. There are age restrictions on when you can access such a product and how much you can borrow.

Essentially, there are two types of equity release products for you to consider: reverse mortgages, where you use the equity in your home to borrow money; and home reversion schemes, where you sell a portion of your home. Currently in Australia there is only one provider of home reversion schemes and you must live in Melbourne or Sydney to qualify for such a sceme.

YourLifeChoices Should you downsize in 2016? January 2016 7

• compound interest can cause the debt to rise rapidly• what you do with money may affect your Age

Pension entitlement• if you’re the sole owner of the property and have a

dependant staying in your home, that person may not be able to stay there should you die.

On the plus side, it’s worth noting that all reverse mortgage products sold after 18 September 2012 must include negative equity protection. This means that you can never end up owing more on your reverse mortgage than you have in equity.

Leverage the sharing communityThe boom in the sharing community has made it incredibly easy to put your spare room to good use. Sites such as Airbnb enable you to rent out a room by the night, with some comfort that the person staying with you has been ‘vetted’ by the community at large.

As any money made must be declared to the ATO as income, you will have to consider your financial position and how this income may affect your Age Pension or tax liability. And what is often not considered is that as soon as you make an income from your home by renting out a room, the ATO will consider this a capital gains and you may be liable for a bill should you sell your home. Although the income generated may be greater than any CGT liability, it is worth consulting a qualified tax accountant before posting your room for rent.

Of course, as the goal is to reduce your debt, you will have to be committed to putting these earnings aside and paying off your debt as quickly as possible. The best way to do this is by automatically transferring it into an account that you can’t readily access and paying the debt with the highest interest rate first.

YourLifeChoices Should you downsize in 2016? January 20168

the practicalities of moving home

Addressing the practical aspects of downsizing is the first step in reaching a good decision.

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Why not take the time to ask yourself these four questions, which will guide you through the main considerations

involved in making a major change?

Why are you downsizing?Is your home is too big? Do you want to be closer to friends or family? Or do you need to release some equity in your home?

If you’re downsizing because your home is too big, then it’s probably the right move. However, if it’s to be nearer family and friends, you should keep in mind that at some stage they might decide to move to a different area.

And, finally, if it’s to release equity in your home, then you might need to consider whether you can actually afford a smaller home in the area you want to live, or whether the additional cash will have an effect on any government income support you receive.

Can you find the house you want?If you want to live in a more urban area to where you currently live but would enjoy living in a bungalow, the chances are you’ll struggle to find something that meets your needs. Similarly, a high-tech apartment out in the bush is not commonplace. Also, if you’re looking for a sought-after style of house, the competition may be fierce and you could end up paying more than you bargained.

Are you physically capable of moving?Moving house takes a lot of hard work and effort – packing boxes, arranging movers and throwing out years of clutter is no mean feat. If you have family and friends to help, then don’t hesitate to ask for assistance. If not, consider how you will manage on your own, whether there are services you can engage and, of course, how much this will cost.

Can you afford to move?OK, this might seem like a stupid question because surely if you’re downsizing your home, you’re downsizing your mortgage, right? Not necessarily. Modern homes and townhouses that are often sought by downsizers can attract a premium, especially if they’re newly built, or are in a price band that also attracts first-home buyers. Stamp duty can also come as a shock to those who haven’t bought a house in several years.

And, lastly, if you are going to have to travel more to see specialists, doctors, friends, etc., you’ll have to factor in these extra costs – and suddenly downsizing can seem an expensive option.

YourLifeChoices Should you downsize in 2016? January 2016 9

the emotions of downsizingOur relationship expert Jo Lamble has got your feelings covered when it comes to

the emotional roller coaster of downsizing.

One of the toughest decisions for people to make is when or whether to downsize. Your heart can say one thing while your head

says another. You may be keen to move while your partner may not. Your kids might hate the idea of you leaving the family home and try to send you on a guilt trip. So how do you deal with so many emotions and make the right decision?

Firstly, it’s important that you don’t make a state-based decision. This simply means that the decisions we make in one emotional state may not be the same decision we make when we feel differently. Impulsively deciding to move to the hinterlands if you live on the coast or in a city may prove to be terribly isolating down the track. If you like the idea of starting a new phase of life in a totally different place, make sure you have short stays over a period of time to test your feelings about the move.

The next step is to make a list of what you think you need for the next 5–10 years. Do you want to stay close to family and friends? Do you need to be near known medical support or business links? Is being close to public transport important? Will your leisure activities be accessible?

As is always the case, you and, where relevant, your partner may need to negotiate and

compromise if you have different ideas on what is higher on your list of priorities. Now is the time to speak up – it’s one of the essential conversations couples need to have.

Your children may not love the idea of the change, but unless they have special needs and still remain at home, their wishes are not more important than yours. Remind them that you would support whatever choices they make in life. If the children aren’t supportive, it can make you doubt your own decision. But remember that even if you are sad to be leaving the home your children grew up in, it doesn’t meant that you have made the wrong decision.

Good choices can still trigger emotions. We can all suffer a bit of post-decision regret. But if you make an informed decision based on all the information you have at the time, there is no room for regrets. Nothing is set in stone. If you are really unhappy with your decision down the track, it’s simply time to make a new choice.

YourLifeChoices Should you downsize in 2016? January 201610

Choosing the right type of property

If you think that downsizing is simply about finding and moving to a smaller property, buyer’s advocate Kristen Hatt explains why you may need to think again.

One of the fastest growing property markets in Melbourne, and indeed most of Australia’s large cities, is the ‘downsizer’

market. This is an indication that the days where retirees are happy to potter around the house and garden have long since passed.

The modern downsizer is more commonly active, keen to travel and socialise, and often has capital locked in their home. Many have lived in their larger family homes on bigger blocks for more than 20 years. It’s often the case that the homes require regular, ongoing maintenance and repairs, detracting from time that could be more enjoyably spent catching up with friends, watching movies, playing with the grandkids and travelling.

The family home is likely to be one of the biggest investments a person or couple will make, so it is fair to expect that if one is ‘downsizing’ the house, this will hopefully leave some money aside for retirement income and travel.

When it comes to property types, most downsizers are searching for similar things: • single storey (or at least the main bedroom

downstairs)• smaller block of land with own title• close to amenities (less than 1km, but more

preferably less than 500m to shops, restaurants and public transport)

• large, open-plan kitchen/meals/family area• plenty of space to entertain• a garage (particularly if it has direct entry to the

home)• security• a low-maintenance, easy-to-lock-up-and-leave

property.

Of course, the desirability of such homes means that competition can be tight and it’s often necessary to consider other options. Next in popularity is the townhouse (with the main bedroom downstairs), followed by the single-storey villa units (6–8 in the block) and, finally, apartments.

The number of buyers entering this market is growing, but buyers who think they will be able to downsize the price they hope to pay may be in for a nasty surprise – especially if they wish to remain in the same area.

Some buyers may think that the only way to be successful in this market is to find more money. However, buyers first need to have a good understanding of what they want and then be able to identify properties that can meet these needs. Only by implementing appropriate strategies, one of which may be to engage a buyer’s advocate, can increase your likelihood of achieving what you want.

Kristen Hatt has been a buyer’s advocate for eight years. www.WoledgeHatt.com.au

YourLifeChoices Should you downsize in 2016? January 2016 11

Centrelink implications of selling the family home

Selling the family home? Well, doing so could affect your Age Pension eligibility if you receive one. Here’s what you need to know.

Many people choose to sell the family home to release some equity and make life in retirement a little more comfortable

financially. This may seem like a good plan, but if you receive a payment from Centrelink, including the Age Pension, the money released could have an affect on how much you receive.

To help you make the most informed decision, you should seek advice from an independent financial planner. But if you’re seeking an overview of how Centrelink will assess the proceeds from the sale of your home, here is what you need to know.

When you sell your main residence, the proceeds from the sale that you intend to use to purchase a new residence can be an exempt asset for a period of 12 months. This is to give you time to choose a suitable home. Should something prevent you being able to do so within the timeframe, you can apply to the Department of Human Services to have this period extended by up to 24 months.

All the proceeds from the sale that are held as financial assets are likely to earn interest. Any

interest earned will be assessed under the income test, which may affect your Age Pension payment. Your Age Pension payment is reduced by 50 cents for every dollar by which you exceed the income test threshold. To view the current income limits, visit YourLifeChoices.com.au.

Any amount leftover after you buy your new home is considered an asset and will be assessed as such. Your Age Pension payment is reduced by $1.50 for every $1000 by which you exceed the assets test threshold. To view the current income limits, visit YourLifeChoices.com.au.

When the income and assets test are both applied, your Age Pension payment is the lower amount of the two. So, it is important to understand from the outset that whilst downsizing a family home for a smaller, less expensive property may free up your capital, it could also result in a loss or reduction of your Age Pension income.

It’s smart to do the sums upfront, but also get them checked by a trusted financial professional, perhaps your accountant.

YourLifeChoices Should you downsize in 2016? January 201612

Granny flats – Centrelink rulesA granny flat is a popular way to downsize. But if you receive income support

from Centrelink, it’s important to understand the rules.

Many people are aware of the real-estate definition of a granny flat but not the definition used by Centrelink. The Social

Security Act allows a range of accommodation circumstances to be included as a ‘granny flat interest’, including where:• an individual ‘pays’ for the right to live there for the

rest of their life, and• the accommodation is in a private residence and

is to be the individual’s principal home.

Centrelink’s granny flat interest rules are designed to recognise arrangements made by families to support elderly people. The rules do not have any test on age or relationship. They do, however, reduce or remove the effect of gifting.

The value of a granny flat interest is simply the amount paid by the purchaser as long as the person:• transfers the title of their home, or• pays for the construction and fit-out of premises, or• purchases property, or contributes to the

purchase of a property, in another person’s name in return for a life interest or the right to live in that accommodation for life.

Your Age Pension eligibility may be subject to a reasonableness test if you have transferred other assets in addition to the above. If the amount of money or value of property exchanged is more than the value of the granny flat interest, the excess is considered to be a deprived asset. Under the gifting rules, this could affect the amount of Age Pension you are paid, as does whether you are assessed as a homeowner or non-homeowner.

Whether you are assessed as a homeowner or non-homeowner will determine:• if the amount you paid is considered an asset• which asset threshold is applied to your payment,

and• whether you’re entitled to Rent Assistance.

The difference between the homeowner and non-homeowner asset test thresholds is called the extra allowable amount and is compared to your entry contribution.* The table below shows whether this difference affects your Age pension:

Category

Entry contribution is more than extra allowable amount

Entry contribution is equal to or less than extra allowable amount

Homeowner Yes No

Entry contribution included in asset test?

No Yes

Eligible for Rent Assistance?

NoYes, if you pay enough rent

*The entry contribution is the amount you actually paid, or the value of the granny flat interest if assessed under the reasonableness test.

You should always confirm your circumstances with the Department of Human Services and seek legal consultation before signing any agreement.

YourLifeChoices Should you downsize in 2016? January 2016 13

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noel’s top five retirement village tips

Finance expert and co-author of The Retirement Living Handbook, Noel Whittaker shares his top five money tips when moving to a retirement village.

Find a community you want to be a part ofWhile normally in real estate the advice is “location, location, location”– and proximity to family and friends and amenities is also an important aspect – a big part of your enjoyment in a retirement community will be the interactions with other residents. To quote a great Australian movie, “it’s the vibe” – so, get to know the other residents by attending open days and other social events.

Understand your contractYour legal ownership has wide-reaching implications, so it is important to know what it is, what rights and responsibilities are attached to it and how it will impact on your pension entitlement and eligibility for rent assistance.

Do your sumsThe costs of moving in and out of a retirement community vary widely. If you are comparing the costs of moving to one or the other, it may help to break the costs into three categories: the ingoing, the ongoing and the outgoing. In some communities there are a few different payment options. Be aware that if you are sharing in a capital gain, you normally share in any capital loss, too.

Have a budgetAnd make sure that it incorporates the costs associated with living in the community, such as the general service charge or site fees, together with your personal expenses, such as utilities, food and entertainment. If you are going to receive extra services, such as meals, domestic help or care, make sure you include these on top of the other charges and then add occasional expenses, such as holidays and Christmas, so you know whether you can afford it.

Seek adviceCrunching all of the numbers can be complicated; a financial adviser who specialises in this area can help you to get it right. It’s also important to seek legal advice to ensure that you have up-to-date Powers of Attorney and a valid will so that you have a trusted person who will act on your behalf, rather than tribunals or courts making important decisions for you.

Noel has written over 20 bestselling books, which have sold more than 2 million copies around the world. His clear and concise financial advice is appreciated by many. Noel’s latest book is sure to offer you some key insights into retirement living.

YourLifeChoices Should you downsize in 2016? January 201614

Retirement villages – what can go wrong?

Retirement villages can be an attractive option when downsizing. But are you aware of the potential traps? Consumer Action Law Centre CEO

Gerard Brody reveals the main ones.

Complex contractsRetirement village contracts are usually very lengthy and complex documents. The vast majority of your rights and obligations will be set out in your contract, so it’s essential that you seek independent advice before signing. Not all lawyers will have expertise in retirement village contracts, so ask around to ensure that you get the right advice. Try to leave yourself plenty of time to review the contract, so you can ask questions or change your mind.

Fees and chargesThere are three main village fees: entry fees, ongoing fees and exit fees. The entry fee is the purchase price for your unit. Ongoing fees are regular fees that cover management and maintenance costs. The main type of exit fee is the Deferred Management Fee (DMF). The DMF can be up to a whopping 35 per cent of the sale price of your unit. Other exit fees include sales commissions and refurbishment costs, and you may also continue to be charged fees while you wait for your home to be sold after you leave.

MaintenanceCheck your contract carefully to ensure you understand the types of maintenance for which you

will be responsible. We have seen disputes about maintenance of gardens and fences, as well as internal roads and sewage. If your responsibilities are unclear, you should clarify in writing what they will be, and what the ongoing fees will cover before you move in.

Empty promisesRetirement villages may promise prospective residents that impressive shared facilities will be built during the sales process. Unfortunately, there is often no guarantee that these facilities will eventuate. It is important to view site plans and other evidence that construction will actually go ahead before you decide to move in if these facilities are important to you.

Relationship with managementIt is difficult to judge whether you will get along with your village manager before you move in, but your relationship can make or break your experience of living in the village. You should speak to existing residents about their relationship with management, the role of the residents’ committee and how disputes are resolved.

Find out more about the Consumer Action Law Centre.

YourLifeChoices Should you downsize in 2016? January 2016 15

Your moving checklistMoving house is, no doubt, a big and stressful task. So, we’ve prepared a moving

checklist that we hope will make the job easier. The key is to plan ahead.

Two months to go Create a folder with all your paper work that

you need for moving

Book a removal company, or if you’re moving yourself, book a van and start packing boxes

Get insurance quotes for your new property

Gather together all your manuals and check whether any appliances, such as your washing machine, has special instructions for moving

Use up all food in open packets, throw out food past its use-by date and start to empty your freezer

Start to write a list of all the mail you receive so you can advise senders of your new address – remember to add your driver’s licence, car registration, GP and electoral roll to the list

Arrange a mail redirection, and redirect newspapers or cancel any subscriptions

Organise to have a rubbish pick up with your local council

Confirm your settlement date and time with your lawyer, and start to plan your moving day

If anything needs repairng in your home, make plans to have this done before you leave

Contact utility companies and arrange to have services switched on in your new property and off in your existing home

Three weeks to go Start to contact those on your mail-redirection

list, advising them of your new address

Return library books, DVDs, etc., and give back any items you may have borrowed from friends and neighbours

Start to disassemble furniture, making sure you keep all screws, allen keys, brackets, etc. together in a clearly labelled bag

Make sure you have all documents that you need for completing your move in one handy folder

Confirm with your bank that everything is ready for your financial settlement

One week to go Get plans of your new home for your removalist,

and mark where everything should go – a simple numbering system on packed boxes will make it easier

Confirm with your lawyer and estate agent that everything is in hand

Arrange an inspection of your new home Get rid of everything that is not going with you,

either to the charity shop or to the tip

Day before Defrost and empty your refrigerator and clean

your oven Unplug appliance cords and label any cables

that may become detached Pack personal items and leave aside

On the day Read all meters and get keys, including garage

remote controls, ready to hand over As each room is cleared, wipe surfaces and

vacuum Do a last minute sweep of the house, looking in

cupboards and drawers, to make sure nothing is left behind

Switch everything off, making sure any hot water systems or similar are shut down if required

Check all windows and doors are locked and then hand over keys to your agent before picking up those to your new abode

Leave a welcoming note and a bottle of champagne for the incoming owner – their day has probably been stressful, too!

YourLifeChoices Should you downsize in 2016? January 201616

Published by: Indigo Arch Pty LtdPublisher: Kaye Fallick Editor: Debbie McTaggart Assistant Editor: Lesh Karan Designer: Word-of-Mouth CreativePhone: 61 3 9885 4935 Email: admin@yourlifechoices.com.auWeb: www.yourlifechoices.com.au

All rights reserved, no parts of this book may be printed, reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, recording or otherwise, without the permission in writing from the publisher, with the exception of short extractions for review purposes.

IMPORTANT DISCLAIMERNo person should rely on the contents of this publication without first obtaining advice from a qualified professional person. This publication is distributed on the terms and understanding that (1) the publisher, authors, consultants and editors are not responsible for the results of any actions taken on the basis of information in this publication, nor for any omission from this publication; and (2) the publisher is not engaged in rendering legal, accounting, financial, professional or other advice or services. The publisher and the authors, consultants and editors expressly disclaim all and any liability and responsibility to any person, whether a subscriber or reader of this publication or not, in respect of anything, and of the consequences of anything done or omitted to be done by any such person in reliance, whether wholly or partially, upon the whole or any part of the contents of this publication. Without limiting the generality of the above, no publisher, author, consultant or editor shall have any responsibility for any act of omission of any author, consultant or editor.Copyright Indigo Arch Pty Ltd 2016

ResourcesProperty searchIf you’re looking for examples of the properties available on the market, or the value of your own home, visit Realestate.com.au.

Equity releaseTo find out more about equity release products, visit Moneysmart.gov.au.

Age PensionTo confirm your individual circumstances and how selling your home to downsize may affect your Age Pension payment, you should contact the Department of Human Services.

Retirement VillagesFor more information on retirement villages and how you can protect yourself when considering entering into a property agreement, visit the Consumer Action Law Centre.

Moving checklistOnce you’ve made the decision to move, our handy checklist on page 15 will ensure the process goes smoothly.