There are many reasons why you might be thinking about downsizing. Perhaps you want a smaller, easier-to-maintain property, you’re looking to be closer to family, or you want to free up equity to fund retirement, travel, or a lifestyle change. For some, it’s about reducing exposure to natural disasters or starting fresh with a new partner.
Whatever your motivation, downsizing is a significant life decision that requires careful planning—both emotionally and financially.
Planning Your Downsizing Journey
Downsizing can bring emotional challenges, especially when it involves leaving the family home. If family members are part of the decision, make time to talk openly about the reasons behind the move and what the next chapter looks like.
Start by making a list of what’s important in your next home—location, size, features, lifestyle needs—and agree on priorities. This helps clarify what you’re looking for and avoids confusion or conflict later.
Do Your Research
Understand the Real Costs
While the term downsizing often implies saving money, this isn’t always the case. Premium apartments in inner-city areas can cost more than large suburban homes. Before making any decisions:
- Get multiple property appraisals
- Compare current house value with target apartment prices
- Factor in all costs: agent’s fees, stamp duty, legal fees, moving expenses, and strata or owner’s corporation fees
- Review your overall cost of living and how the move could affect it
Consider Government Support & Super Options
If you’re downsizing after age 55, you might be eligible for the downsizer contribution, which allows you to contribute up to $300,000 from your home sale into your superannuation. It’s a one-off opportunity and should be carefully considered as part of your retirement planning.
Think Long-Term
Don’t just consider your needs today. Ask yourself:
- Will this property still work for me in 10–15 years?
- Is it close to healthcare, transport, shops, and social networks?
- Does it support ageing-in-place or future care needs?
Buying Off-the-Plan? Be Cautious
If you’re considering buying an apartment off-the-plan:
- Check the developer’s track record
- Research their previous projects
- Visit completed developments to assess build quality
- Ensure they’ve operated under the same business name for a long period
A glossy brochure can hide a lot—due diligence is essential.
Emotional Readiness is Key
Moving into a smaller space and leaving behind a home full of memories can be an emotional rollercoaster. Prepare for this transition by focusing on the positives:
- Less upkeep
- Lower utility bills
- Potentially better location and lifestyle
- More financial freedom
But also acknowledge the feelings of loss or anxiety that can come with such a big change—and be kind to yourself through the process.
Downsizing Don’ts: Mistakes to Avoid
To avoid costly or stressful mistakes, steer clear of these common downsizing pitfalls:
- Don’t rush. Give yourself time to make thoughtful decisions. A rushed move can lead to regrets.
- Don’t downsize for the wrong reasons. Generosity is admirable, but giving away funds (e.g., to adult children) could compromise your own financial future.
- Don’t let others pressure you. Whether it’s a partner or family, only move when you’re truly ready.
- Don’t skip professional advice. Engage a financial adviser, accountant, and legal expert. Buyer’s agents can also help you find the right property at the right price.
- Don’t ignore tax or pension impacts. These can dramatically affect your long-term finances. Understand how selling your home will affect your Centrelink entitlements, super contributions, or capital gains tax.
Conclusion: Is Downsizing Right for You?
Downsizing is a deeply personal decision that can be life-changing—for better or worse. When done right, it can lead to a simpler lifestyle, improved financial stability, and greater flexibility in retirement.
But it’s not just about moving into a smaller space. It’s about aligning your living situation with your evolving goals, needs, and values. Take your time, ask the right questions, and seek expert guidance. With a thoughtful approach, downsizing can become one of the most empowering decisions you’ll ever make.
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How can we help?
If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au or arrange a time for a meeting so we can discuss your requirements in more detail.
General Advice Warning
The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.
Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.
Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.
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