IF DOWNSIZING is a concern for you, you may be wondering what additional equity in your home can earn you.
Many Australians planning for their future depend on the equity in their property to fund their retirement plans – whatever they are (hopefully lots of vacations).
With the Victorian property market hitting new heights after the pandemic, selling the family home now will most likely fetch a high price – especially with the RBA looking to raise interest rates next year.
Over the past three months, Lifestyle Mount Duneed homeowners have leveraged the strength of equity locked up in their existing homes by releasing an average of $243,000.
So what does your downsizing future hold? A brand new home with world-class amenities like a stunning indoor pool and private gym just steps from your front door? A relaxing or adventurous holiday? A caring community that promises to have a good time?
For relatively new Lifestyle Mount Duneed owner Tom Gleeson, the equity gained between selling his Highton home and downsizing at Lifestyle Communities meant he could shore up his retirement plans worry-free.
With the added financial security offered by leveraging his home equity, he bought the perfect home for him and let the travel bug bite.
Wanting to downsize after more than 30 years in Highton, Tom had researched property options in the neighborhood, as well as different village options. A chance encounter with old friends and a cup of coffee at their new Lifestyle Mount Duneed home in the middle of last year was the catalyst for Tom’s decision.
Immediately struck by the spaciousness and beautiful homes of Lifestyle Mount Duneed, he was able to chat with the Lifestyle team right away. He sold and moved in January of this year.
“I think it’s a solid economic proposition and there are a lot of benefits,” he said.
“One of the great things about Lifestyle is that the houses are really well laid out. It’s not hard to really like living here.
“It was nice to be welcomed here and to have people come and say hello, from day one.”
The homes on offer at Lifestyle Mount Duneed – perfectly perched between the city and the sea – are elegantly designed and designed for easy living.
If that sounds tempting but you’re feeling a bit confused about your own capital, how you calculate it, grow it, use it, and release it, we’ve answered some important questions for you.
What is Equity?
Simply put, home equity is the market value of your home minus the amount you still owe on your home loan. For example, if your house is worth $700,000 and you still have $200,000 to pay, then you have a net worth of $500,000.
How can you use your capital?
You can use the equity in your home to get financing for a range of things, like money to invest in other properties, stocks, or even home renovations.
When you use your equity for financing, you’re essentially increasing the amount you owe your lender and using your home as collateral. For this reason, it’s important to consider the long-term impacts of increasing your loan repayments, which is why downsizing can take the stress out of having to keep up with a mortgage.
How can you unlock equity at Lifestyle Communities?
An “asset-rich” approach to retirement may no longer be sustainable or provide a financially viable income stream, so freeing up equity by downsizing might be a good option for you. For example, the average selling price our homeowners got when selling their homes in Belmont, Grovedale and Highton is $753,536. With Mount Duneed downsizing homes starting at $520,000, that means our homeowners have freed up an average of $243,000 in their home equity.
The financial benefits of Lifestyle community living are not insignificant and here is why:
- Bang for buck (nice new house)
- Use proceeds from your existing home to pay cash for your new home
- Pay off all debts (smart)
- Supplement your retirement income
- Zero stamp duty (that’s gold)
- Hassle-free (and damn fun)
- Make your dream vacation a reality (our favorite perk!).
Find out how much your home is worth and see how much equity you’ll free up when you move to Lifestyle Mount Duneed on Geelong and the Surf Coast. New, downsized homes start at $529,000*.
Call 1300 50 55 60 or visit lifestylemountduneed.com.au to book a tour of our community.
*Prices correct as of March 2022. Subject to change without notice.