Property – What will you do when your property no longer fits your life?
Financial Planner Luke Smith joined 2CC Talking Canberra 1206AM in The Money Show which aired on Friday 7 May 2021. This week’s topic: Property – Should I renovate or should I move? It’s a fairly straight forward question but there’s quite a lot to think about once you scratch the surface.
Life changes and while your home might fit you right now, there are many factors that might make it not suitable for your needs in the future. Perhaps you have a growing family and you need more room for instance. Or perhaps the kids have moved out and you’re rattling around in too much space.
In this episode Luke provides his insights and tips into the factors you might think about.
Key highlights include:
- The dangers of being a young thunder cat and borrowing too much, when interest rates are low.
- It’s hard to find trades people right now, and house prices are high so it might seem neither option is great.
- Don’t forget about stamp duty.
- If you are 65 years or older and meet the eligibility criteria, there is a superannuation downsizing opportunity if you’re buying something smaller.
- What happens if interest rates rise and you have borrowed to renovate or move?
- Are you happy in your current suburb?
- Do your math, how much will moving cost in total? Could that be put towards a renovation?
- Inner versus outer suburbs – there’s a difference in cost if you’re thinking of moving.
- How long do you need the extra space for?
- There’s no capital gains tax on selling your own home, so it might be worthwhile to improve the value of your property that you may sell in the future.
- What are the key factors to think about if you make the decision to move?
- If you’re downsizing, what are your options with the money left over? Don’t forget about the impact on Centrelink if that’s an issue for you.
- Luke offers his top tips for thinking about these issues to help you make an informed decision.
- Seek advice if you need help to make an informed decision.
- Everyone has different goals and financial planning advice can help you achieve them more effectively, especially when you link different strategies.
Listen to the Podcast right now
Also available on Apple Podcasts and Spotify ‘The Strategy Stacker – Luke Talks Money’
Do you need advice around renovating or moving?
Luke as a Financial Planner can help you set up a financial planning strategy to help you achieve your personal financial goals. The decision to renovate or move can be complicated but the good news is you can make an appointment to speak with Luke about your specific situation, goals and objectives. Luke can also refer you to a mortgage broker, accountant or solicitor at no cost if required.
Make an appointment to confidentially discuss your own goals around money, super, investment, insurance or retirement. Call Envision Financial Services on 6260 4749. You can also use our contact us form to make an appointment for a confidential discussion about your situation.
Luke will return to talk about financial planning on 2CC next Friday fortnight. You can also catch up with The Strategy Stacker – Luke Talks Money podcast. We look forward to your company again.