Downsizing done right: A smart guide for empty nesters

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The family home served you well. It’s where birthdays were celebrated, milestones were reached, and memories were made.  

But as the kids move out and life shifts gears, that once-busy house can start to feel oversized, and maybe a little high-maintenance. 

For many Australians, downsizing isn’t about giving something up. It’s about gaining freedom, reducing stress, and unlocking financial flexibility.  

Whether you're after a sea change, city convenience, or just fewer gutters to clean, this guide will walk you through every step of the journey, from deciding if downsizing is right for you, to financing your move and making the transition smooth. 

Is downsizing right for you? 

Downsizing isn’t just a financial decision, it’s a lifestyle one. 

Take time to think about what you want from this next chapter. Are you looking for more walkability? Less yard work? Better access to healthcare or community? 

Here are some questions to ask yourself: 

• Do I want to reduce maintenance? 
  Would trading lawn mowing for a lock-up-and-leave lifestyle suit your weekends better? 

• Is location a priority? 
  Living closer to cafes, medical centres or public transport might outweigh the need for spare bedrooms. 

• What about family and visitors? 
  If grandkids are regular guests, a spare room (or sofa bed) might be non-negotiable. 

• Am I emotionally ready to leave? 
  Saying goodbye to a home full of memories can be tough. Take your time and involve loved ones in the decision. 

Helpful tip: Try creating a downsizing checklist that weighs up your non-negotiables vs nice-to-haves.

You can even use Aussie’s Property Hub to explore and track potential suburbs that align with your lifestyle goals. 

Get across your finances: Budget, equity and borrowing power 

Downsizing can free up funds, but it also comes with costs. From legal fees to moving expenses, it’s important to understand the full financial picture. 

Key numbers to figure out: 

• Your borrowing power 
  Use Aussie’s Borrowing Power Calculator to get an estimate based on your income, expenses, and goals. 

• How much equity you’ve built 
  Equity is the current market value of your home minus what’s left on your loan. If you’ve owned your home for years, you might have built up enough equity to buy your next place debt-free or reduce the size of your next mortgage. 

• Transaction and transition costs 
  Include things like agent commissions, stamp duty, conveyancing, moving fees, temporary accommodation, and any bridging finance if you need to buy before you sell. 

• Ongoing living expenses 
  Moving to a smaller home may mean lower rates and utility bills, but if you're moving to a pricier suburb or lifestyle village, day-to-day costs might rise. 

Need help crunching the numbers? A quick chat with an Aussie Broker can give you clarity and confidence before you commit. 

What makes a great downsizer home? 

Downsizing doesn’t mean downgrading, it's about finding the right small, not just any small. 

Your options might include: 

• Apartments: 
  Ideal for security, low maintenance, and central locations. Look for lift access, step-free entry, and pet-friendly strata rules. 

• Townhouses: 
  A balance between space and simplicity. Bonus if you find one with a private courtyard or garden. 

• Lifestyle communities or over-55s villages: 
  Offer social events, shared amenities, and often better accessibility. A great option if you’re looking to be part of a community. 

Don’t forget to check: 

• Accessibility features like walk-in showers, wide doorways, and minimal stairs. 

• Storage space for treasured items you can’t part with. 

• Proximity to health services, public transport, and the places you love to go. 

Renovate or relocate? 

Sometimes, the smartest move is staying put with a few strategic upgrades. 

Renovate if: 

• You love your current location and community. 

• Your home just needs a layout tweak or modern refresh to suit your future needs. 

• The cost of renovation is lower than selling and buying again. 

Relocate if: 

• The home is simply too large, difficult to maintain, or doesn’t suit your lifestyle anymore. 

• You want to release equity to supplement retirement savings or reduce mortgage stress. 

• You're ready for a new chapter somewhere new. 

Explore renovation finance options with an Aussie Broker if you want to upgrade your existing home. 

Planning the move: From purge to possession 

One of the hardest parts of downsizing isn’t finding a new home, it’s deciding what to take with you. 

Here’s how to make the process easier: 

• Declutter gradually: 
  Start early and work room-by-room. Sort everything into keep, donate, sell, and toss. 

• Digitise memories: 
  Photos, letters and journals can be scanned or photographed to save space while preserving the memory. 

• Rethink furniture: 
  Measure your new space before deciding what comes with you. Oversized couches and king beds may not fit. 

And don’t forget the move logistics: 

• Coordinate settlement dates to avoid housing gaps. 

• Consider professional movers vs a DIY approach on weigh cost vs stress. 

• Update utilities and address details early to avoid last-minute chaos. 

You might also be interested in: Downsizing guide for senior citizens

FAQs 

1. What’s a good way to finance a downsized home? 
   You may be able to buy outright using home equity or top it up with a smaller loan. A renovation loan might also be suitable if you're updating a smaller property. 

2. Are there stamp duty savings for downsizers? 
   Some states offer stamp duty concessions or exemptions for retirees or seniors who meet certain criteria. It varies by location, so check your state or speak with your broker. 

3. Is it better to sell before I buy? 
   It depends on your circumstances. Selling first can give you a clear budget, but buying first can help you secure your ideal home. Bridging finance is available to help cover the gap if needed. 

4. What are the financial benefits of downsizing before retirement? 
   Lower maintenance costs, reduced utility bills, and the ability to unlock equity to boost your retirement savings or reduce your mortgage. 

5. Can I still enjoy my lifestyle after downsizing? 
   Absolutely. Most downsizers report greater freedom, less financial stress, and a better quality of life, without the upkeep. 

Downsizing with confidence 

Downsizing is a personal journey. It’s about more than moving to a smaller home, it’s about moving toward the life you want. It could mean lower bills, more walkability, or simply a better use of your time and money. 

With the right tools and advice, it doesn’t have to be overwhelming. Aussie is here to guide you through it all, from checking your borrowing power to exploring equity and navigating next steps. 

So, whether you're relocating, renovating, or just starting to explore your options, know that you're not alone. We've helped thousands of Australians make smart, confident moves and we're ready to help you too. 

Talk to an Aussie broker today to start your downsizing journey with clarity. 

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