Downsizing in the Shire: a practical guide

The family home has done its job. It raised the kids, hosted the Christmases and held decades of memories. For many people across the Shire, it's now more house than they need, and more house than they want to look after.

Downsizing used to be something people did when they had to. More and more, people are choosing to do it while they're well, unhurried and in control of the decision. Here's why.

1. Free up your equity

Selling the family home can clear a mortgage or other debts and leave money working for you. Apartment living also tends to mean lower running costs and far less spent on upkeep. That leaves more of your budget for travel, family and the things you enjoy.

2. Lighten the load

Decades of belongings add up. Moving on your own timeline means you decide what stays and what goes, calmly and at your own pace. It's far easier than leaving it for later, or for family to sort through.

3. Choose a home for the next 20 years

If you move while you're fit and well, you can choose a home that suits you now and later on. Look for single-level living, lift access, secure parking and outdoor space that doesn't need mowing. The right apartment can help you stay independent in your own home for longer.

4. A potential boost to your super

If you're 55 or over and have owned your home for at least 10 years, you may be able to contribute up to $300,000 from its sale to your super through the Government's downsizer contribution. Couples may be able to contribute up to $600,000 combined. The rules are specific, so read the ATO's guide to downsizer contributions and talk to a licensed financial adviser about whether it suits you.

What to look for in your next home

• Everything on one level, with lift access from the car park
• A balcony or courtyard big enough to sit out and entertain
• Shops, transport and health services within walking distance
• A finished building you can inspect before you commit

How Caringbah Pavilion fits

Caringbah Pavilion offers one, two and three-bedroom apartments with generous balconies, resident gardens and a pool, a supermarket downstairs and Caringbah Station a four-minute walk away. The building is in its final stages, so you can walk through a finished apartment and see exactly how you'll live.

Frequently asked questions

Can I put money from selling my home into super?

Possibly. If you're 55 or over and meet the other eligibility rules, the downsizer contribution lets you put up to $300,000 from the sale of your home into super. It doesn't count towards your usual contribution caps.

Do I have to buy a smaller home to qualify?

No. The downsizer contribution is based on selling your home. You don't have to buy a smaller home, or any home, to be eligible.

Can my partner and I both contribute?

Yes, if you're both eligible. Each of you can contribute up to $300,000, so a couple may be able to contribute up to $600,000 combined.

How long do I have to make the contribution?

Generally within 90 days of receiving the sale proceeds, which is usually at settlement. The ATO can grant extensions in some circumstances.

Will it affect my Age Pension?

It may. Money in super can count towards the Age Pension assets test, so get advice before you contribute.