Downsize your home and use your home equity to free up an amazing life

IF DOWNSIZING is on your mind, you may well be wondering what extra bang for buck your home equity can get you.

Many Australians planning for their future depend on their home equity to help fund their plans for retirement – whatever they may be (hopefully lots of holidays).

With the Victorian property market reaching 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 in the next year.

Over the last three months, Lifestyle Mount Duneed homeowners have leveraged the strength of the equity locked up in their existing homes by freeing up a whopping $243,000 on average.

So what does your downsizing future hold? A brand-new home with world-class amenities like a stunning indoor pool and private gym just a short stroll from your front door? Relaxing or adventure-filled holidays? A caring community that promises a rollicking good time?

For relatively new Lifestyle Mount Duneed homeowner Tom Gleeson, the equity gained between selling his Highton home and downsizing to Lifestyle Communities meant he could shore up his worry-free retirement plans.

With the added financial security afforded 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 investigated real estate options in the neighbourhood, as well as different village options. A chance meeting with old friends and a cup of coffee at their new Lifestyle Mount Duneed home mid-last year was the catalyst for Tom’s decision.

Immediately struck by the space and the lovely homes in Lifestyle Mount Duneed, he was able to chat right there and then with the Lifestyle team. He sold up and moved in January this year.

“I think it’s a sound economic proposition and there are a lot of benefits,” he said.

“One of the benefits to Lifestyle is that the houses are really well put together. It’s not hard to really like living here.

“It was lovely to be welcomed here and have people come by and say hello, right from day one.”

The homes on offer in Lifestyle Mount Duneed – perfectly perched between the city and the sea – are stylishly designed and made for easy living.

If that sounds tempting but you’re feeling a little hazy about your own equity, how you calculate it, grow it, use it, and free it up, we’ve answered some important questions for you.

What is equity?
Put simply, home equity is the market value of your home, minus the amount you still owe on your home loan. For example, if your home is worth $700,000 and you still have $200,000 left to pay on it, then you have $500,000 equity.

How can you use your equity?
You can use your home equity to secure finance for a range of things, such as money to invest in other properties, shares or even home renovations.

When you use your equity to secure finance, you are essentially increasing the amount you owe to your lender and using your home as security. For this reason, it’s important to consider the long-term impacts of increasing your loan payments, which is why downsizing can remove the stress 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 could be a good option for you. For example, the average sale price our homeowners achieved by selling their homes in Belmont, Grovedale and Highton is $753,536. With Mount Duneed downsizer homes starting at $520,00, that means our homeowners freed up an average of $243,000 in their home equity.

The financial benefits of Lifestyle Community living are nothing to be sneezed at and here’s why:

• Bang for buck (beautiful new home)
• Use the proceeds from your existing home to pay cash for your new home
• Pay off any debts (clever)
• Supplement your retirement income
• Zero stamp duty (that’s gold)
• Worry free (and darn good fun)
• Make your dream holiday a reality (our favourite benefit!).

Find out how much your home is worth and see how much equity you’ll free up when you make the move to Lifestyle Mount Duneed on Geelong and the Surf Coast. New downsizer homes start from $529,000*.

Call 1300 50 55 60 or visit lifestylemountduneed.com.au to book a tour of our community.

*Prices correct as at March 2022. Subject to change without notice.