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Downsizing can unlock equity

Downsizing can unlock equity

Research from the Real Institute of Victoria shows that people can gain financially from downsizing.
New research from the Real Estate Institute of Victoria (REIV) shows that people can benefit financially by downsizing in Victoria.

They found that, on average, people who moved from a four bedroom to a three bedroom house stood to gain $145,000. Those who moved from a three bedroom apartment to a two bedroom apartment gained an average of $159,000.

Unsurprisingly, people who stood to gain the most equity according to their survey were those who moved from a three bedroom house to a two bedroom apartment. On average, they would gain $220,000.

 

Historically, retirees have shown a preference towards downsizing their property. Part of this reason is because that they no longer need to own a large family home after their children move out. They can also benefit from a significant rise in the price of their property if they have been owned for several decades.

 

 

Chief executive officer for REIV hopes that the research will inform retirees that are considering downsizing.

 

 Posted by Craig Francis

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

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