
Setting Your Wealth Management Resolutions for 2025
Set your wealth management goals for 2025! Discover strategies to preserve, grow, and transfer your assets while ensuring a secure financial future for generations to come.
Whether you want to get closer to nature, explore national parks, or chow down in great local cafés and boutique wineries, it’s easy to see why so many people downsize to the Southern highlands. Nestled in the breathtaking outdoors of the Great Dividing Range, the Highlands is still conveniently connected to Wollongong, Sydney, and Canberra by a 60-90 minute drive.
While downsizing is often a lifestyle decision for pre-retirees and retirees, it’s also a big financial decision. If you are considering making the transition, these tips will help you plan financially for a smooth move to the beautiful Southern Highlands.
Downsizing will free up cash flow that was previously tied down in your home. How you allocate these funds can greatly impact your finances in retirement, so it’s important to consider your options with a financial advisor such as Poole Advisory. You may choose to:
As well as wealth creation opportunities, downsizing should save you money through:
As you approach retirement age and farewell your primary source of income, it’s critical to plan your budget carefully when downsizing. That means accounting for costs such as:
Transfer duty (formerly known as stamp duty). This will be one of the highest costs involved. The exact amount will depend on the value of your new home (there may also be some concessions for an ‘off the plan’ purchase). To give you an idea, the current transfer duty for an established NSW home worth $1,000,000 would cost around $40,000.
Renovations. Whether you want to spice up your existing home for maximum sale value, or your new place needs a little tender loving care, renovations can also be one of the higher costs associated with downsizing.
Moving costs. Even if you have your family and friends helping out, moving costs money. Hiring professional movers or trucks, transportation, and temporary storage can all add up to several thousand dollars. The greater the distance you move, the more you’ll pay.
Real estate agent fees. The average real estate agent commission in NSW is 2.1%, however, when selling your home you may need to pay additional marketing fees to attract more qualified buyers.
Potential impact on the Age Pension. The proceeds from selling your home are exempt from the Age Pension assets test for up to 24 months – as long as you plan to use them to buy, build or renovate another home. After that, any money made from the difference between the sale of your existing home and the purchase of your new home impacts the assets test. This may reduce your pension income if you are receiving any.
There are several legal factors to take into account when downsizing, including recent legislation changes that may make the move even more attractive to pre-retirees:
We recommend you speak with an experienced financial planner before you start shopping around for your new home. At Poole Advisory, we can help you create a sound financial plan to make downsizing a smooth experience – whether you need advice on your new home budget, or how to invest new cash flow efficiently.
Given we are based in Bowral in the Southern Highlands, it makes us the perfect financial advisor if you’re looking to move to the area. To get started, you can book a complimentary introductory consultation with our Principal Financial Advisor Anthony Poole, or send us a message with any questions via our contact form.
Compliance Disclaimer:
This information contains general advice only, that is, advice which does not take into account your needs, objectives, or financial situation. You need to consider the appropriateness of that general advice in light of your personal circumstances before acting on the advice. You should obtain and consider the Product Disclosure Statement for any product discussed before making a decision to acquire that product. You should obtain financial or credit advice that addresses your specific needs and situation before making investment or borrowing decisions. Taxation information is based on our interpretation of the relevant laws as at 1 July 2018. While every care has been taken in the preparation of this information, Prosperitas Partners Pty Ltd does not guarantee the accuracy or completeness of the information. The case studies are hypothetical, for illustration purposes only and are not based on actual returns
Poole Advisory Pty Ltd ABN 15 642 040 604 is a Corporate Authorised Representative (No. 001282603) of Prosperitas Partners Pty Ltd ABN 30 662 654 453 AFSL 544 917
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