Life changes, and so must the space you call home. If you’re an older Australian currently sitting on an empty nest, you may not have been in the property market for a while. Things have changed. Here’s what you need to know in order to downsize and dodge the hassle.
Why Would You Downsize?
As life changes, so should the space you call home. For many older Australians—particularly those born between 1946 and 1964 (also known as ‘boomers’ or ‘baby boomers’)—downsizing is a practical and financial opportunity.
With the kids long moved out and empty rooms collecting dust, it makes sense to consider a smaller property that better suits your current lifestyle.
But the benefits go beyond just saving on cleaning and maintenance. Downsizing can free up capital tied to your home, giving you financial flexibility for retirement, travel, or helping out your children.
In many cases, selling a larger family home in a sought-after area opens the door to properties that better fit your needs—single-storey houses, townhouses, or even smaller freestanding homes closer to cafes, transport, or health services.
Beyond the personal benefits, downsizing also addresses a broader social issue. Many younger Australians struggle to find family-sized homes in established suburbs, often citing “boomer blockades” as a key barrier to entry.
By moving to a home that fits your stage of life, you contribute to a healthier housing market and help the next generation thrive.
How to Sell in the Modern Market
Selling a property in 2025 isn’t like it was 20 years ago.
How to sell in 2025
The market is digital, fast-paced, and highly competitive. To get the best price for your home, you need to approach the sale strategically.
Start with an honest valuation of your property.
Get the right data
Don’t rely solely on online calculators or hearsay—engage a trusted real estate agent who understands your area. With the current demand for homes in established suburbs, you may be surprised at how much your property is worth.
Focus on presentation
While your home may be perfect to you, buyers want to see potential, not personality. Decluttering is essential, as is hiring professional cleaners and possibly staging experts to make your home more appealing. Strong professional photos and virtual tours are now non-negotiable for marketing success.
Make technology your friend
Finally, embrace technology. Buyers are looking online first, so ensure your agent uses online platforms to promote your listing.
Social media ads targeting your area can also amplify your reach. Make sure you ask your real estate agent about all of the options they plan on using to sell your place. And don’t be afraid to ask questions!
What You Should Look for When You Downsize
Next, you need to figure out what your future property needs are.
When choosing your next property, consider more than just the size. The goal is to find a home that complements your current and future lifestyle.
These are a few perfect options for downsizers looking to make the most out of their space:
Townhouses and Villas
These are excellent for low-maintenance living while retaining some outdoor space. Many developments are located in suburban or inner-city areas, giving you access to shops, parks, and transport. However, strata fees can be a downside.
Strata fees, also known as body corporate fees, are regular payments made by property owners in multi-unit developments like townhouses.
These fees contribute to the maintenance and management of shared areas and facilities, such as gardens, pools, lifts, and building repairs.
The amount varies depending on the property size, amenities, and location, and is typically set by the owners’ corporation or strata committee.
Make sure you get the strata report from the building or complex you’re looking to move to, and review the terms carefully.
Freestanding Smaller Homes
If you’re not ready to give up the independence of a house, a smaller freestanding home can be a great compromise.
Look for properties with fewer bedrooms, a single storey, and minimal gardens to manage.
Single-Level Living
Mobility becomes increasingly important with age, so consider homes without stairs. Even if you don’t need it now, single-level living is a smart move for the long term.
Living near your needs
Think about the sort of services you might need access to in the coming years. Proximity to healthcare, public transport, and community hubs should factor into your decision.
If you love dining out or shopping, make sure your new location offers those opportunities.
By the Numbers: How to Handle Your Downsizing Finances
The financial side of downsizing can feel daunting, but with the right approach, it can set you up for a secure future.
Remember: you should always consider your own financial situation before making big decisions.
Government concessions
Many states, including NSW and ACT, offer stamp duty discounts or exemptions for downsizers.
For instance, the NSW Government’s downsizing scheme allows eligible homeowners over 55 to save thousands on their next purchase.
Superannuation
Consider how your superannuation can work for you.
The Australian Government’s Downsizer Contribution Scheme allows you to contribute up to $300,000 from the sale of your home into your super fund, tax-free.
This can significantly boost your retirement savings, but speak with a financial advisor to ensure it aligns with your broader goals.
Taxes, costs and equity
Agent fees, capital gains tax (if applicable), and moving expenses can add up quickly. Budget for these in advance to avoid surprises.
Finally, think about what you’ll do with the leftover equity. Downsizing often frees up significant capital—don’t let it sit idle.
Our brokers can help you figure out what to do with it to make the most of your remaining equity.
Legal considerations
If you’re selling your current home, you’ll need to ensure all legal documents related to the property are in order.
This includes the title deed, any building permits, and compliance with local council regulations.
If there have been renovations or extensions, confirm they are fully approved and documented. If they haven’t, it might be time to get rid of the home-made thunderbox in the backyard that plumbs directly into the stormwater. As an example.
A solicitor or conveyancer can help ensure all these boxes are ticked.
Finally, think about the legal implications of your downsizing decision on your estate planning. Selling a major asset like your family home could affect the distribution of your estate.
Updating your will to reflect your new financial position and assets is a prudent step to ensure your wishes are clear.
Here’s what to be careful of
While downsizing has many benefits, there are potential pitfalls to avoid.
Strata and Maintenance Fees
If you’re moving into a townhouse or strata property, review the body corporate rules and fees thoroughly. Ongoing costs can be higher than you anticipate.
Emotional Hurdles
Selling a family home is often an emotional process. Memories, attachment, and the stress of moving can make it harder than expected. Take your time to say goodbye and focus on the opportunities ahead.
Overpaying for Your Next Home
Downsizing doesn’t always mean spending less. Be careful not to get caught up in bidding wars or buying into high-demand areas at inflated prices. Stick to your budget and priorities.
Accessibility Concerns
Even if you’re fit and active now, think long-term. Avoid properties with features that could become impractical later, such as stairs or steep driveways.
You might also be interested in: Tips for downsizing
One of our mortgage brokers can help with everything
Navigating the financial side of downsizing can feel overwhelming, especially if it’s been decades since you last bought a property.
This is where a mortgage broker becomes an invaluable resource, offering expertise to simplify the process and maximise your financial benefits.
A mortgage broker acts as your advocate in the lending market. They assess your financial situation, including the equity in your current home, your income, and your long-term goals, to find the best loan products tailored to your needs.
If you’re downsizing, they can help structure your loan to suit your new financial stage—whether that’s a shorter loan term, interest-only repayments to preserve cash flow, or refinancing to secure a better rate.
If you’re downsizing into a strata property or townhouse, a broker can guide you through how additional costs like strata fees or body corporate expenses may affect your borrowing capacity and help you factor them into your budget. They can also explain how lending requirements may differ for older buyers, especially if your income now relies on superannuation, pensions, or other non-traditional sources.
We can also take the stress out of the paperwork. From pre-approvals to final settlements, they handle the often-complicated loan application process, so you can focus on finding the right property instead of worrying about the fine print.