Downsizing in Australia - Mark O'Shea | Page 37

Dean Lupson Legal documentation and tax implications In some areas of Australia right now, the value of the family home has risen to such a height that when downsizing there can be major windfalls that see several hundreds of thousands of dollars of equity released, and in some cases up to a few million dollars. So there are two questions right there: What is the best way to invest or spend the ‘spare cash?’ And are there tax implications? Quite often we see downsizers buying a smaller but suitable home and then investing in another property down at the beach or in a country getaway that allows them to share their time between seasons and holidays. Therefore, with the increase in cash and bank accounts comes 037