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Ready to downsize in 2025? Downsizing could unlock a world of new possibilities, whether you're chasing a simpler lifestyle, freeing up equity, or wanting less upkeep. But like any big move, it comes with huge financial, legal and emotional decisions.
At Aussie, we know every move is personal. That's why we've pulled together this guide to downsizing your home in Australia, packed with insights from our award-winning Brokers and Buyer's Agents who help Aussies downsize smarter every day.
Why are you downsizing, and what do you want next?
Step back before boxing up the family photos and think about your next chapter. Your reasons for downsizing will shape what you sell, where you buy and how you plan for the future.
Are you downsizing for financial freedom or lifestyle change?
Want to boost your super?
Cut back on the garden maintenance?
Free up some cash for travel, hobbies or family?
Chasing a lifestyle shift: a simpler pace, a closer community, a new adventure?
Where do you want to land?
Think about what matters most:
Close to healthcare, family or friends
Easy access to shops, cafes, transport
By the beach, in the bush, or a buzzing lifestyle village
Are you ready for the emotional side of moving?
Leaving the family home after decades isn't easy, and that's normal. You might feel excited, nostalgic, even a little lost. Planning for the emotional journey is just as important as planning the move.
What should you do before selling your property?
Selling the family home is a big moment; getting it right can make a real difference.
Get a professional property valuation.
Know what you're working with.
Book an independent valuer for a full picture of your home's value.
Chat with a local real estate agent about a comparative market analysis.
Use the Aussie Property Experience to check nearby sales and growth trends.
Knowing your true value helps you price smart, negotiate confidently and plan your next move.
Declutter and stage like a pro
Today's buyers want space, light and lifestyle, not a walk down memory lane.
Declutter: Pack away personal items before opening homes.
Style smart: Fresh paint, good lighting and neutral tones make a big difference.
Highlight accessibility: Single-level living, wide doorways, and easy entry are big selling points.
A polished home often sells faster and for more.
Timing matters: When to list in 2025
It's not everything, but it sure helps.
Autumn 2025 could be golden. Cooler weather and motivated buyers.
Spring is always a favourite, thanks to the market's blooming gardens and high energy.
Local trends can shift. Use suburb insights from Aussie and talk to your Broker about the right time to act.
Should you renovate or sell as-is?
It's the classic downsizer question. Ask yourself:
Will small updates (paint, gardens, fixtures) add real value?
Is your home move-in ready, or would buyers expect more?
Will a $10,000 spend give you a $50,000 return or eat into your profits?
Focus on cosmetic upgrades that boost appeal without blowing the budget. Big renos are rarely worth it unless the payoff is clear.
Aussie Tip: Use our Property Value Estimate Tool to understand how your current home is tracking.
What are the financial and tax implications of downsizing
Downsizing your home can open the door to new financial opportunities, but it's important to get the facts straight before you move. Here's what to keep in mind:
Unlocking the Downsizer Superannuation Contribution Scheme
If you're 55 or older in 2025, the Downsizer Superannuation Contribution Scheme could greatly boost your retirement savings. Here's how it works:
You can contribute up to $300,000 per person (or $600,000 per couple) from selling your family home directly into your super fund.
It won't count towards your regular concessional or non-concessional contribution caps.
There's no work test or upper age limit for using the scheme.
The key downsizer superannuation rules to know:
You must have owned the home for at least 10 years, and it must have been your principal residence at some point.
You need to make your super contribution within 90 days of settlement.
Before selling, talk to a financial adviser to ensure your contribution is properly structured and understand how it might affect your Age Pension or tax position.
Stamp duty concessions and retirement rebates (State-specific)
Depending on where you plan to move, you could be eligible for some handy savings on stamp duty. Some key highlights:
NSW: Stamp duty concessions for eligible retirees downsizing to a smaller home.
QLD: Transfer duty discounts for seniors and first-time downsizers moving into retirement living.
VIC: Pensioner stamp duty exemptions or concessions for eligible buyers.
WA, SA, TAS, ACT, NT: Various incentives and rebates available, including entry into retirement villages.
Concessions and rebates can vary from state to state. Check the latest eligibility rules before you buy. If unsure, your Aussie Broker can help you find the right resources or point you to a trusted adviser.
Will selling affect your age pension eligibility?
If you're already receiving (or planning to receive) the Age Pension, this is a big one to think about.
Here's the simple version:
Your family home is generally exempt from the Age Pension assets test.
But once you sell, the sale proceeds (before buying a new home) are counted as assessable assets.
Holding large cash amounts or delaying your next purchase could temporarily reduce your Age Pension entitlement.
Downsizer super contributions are also counted once you reach the Age Pension age.
Centrelink offers a 12-month 'grace period' where money from a home sale intended for a new home can be exempt from the assets test, but there are rules around it. If your Age Pension matters, it's also smart to get financial advice before you sell. Good planning could save you thousands down the track.
How to use released equity responsibly
One of the biggest upsides of downsizing is the chance to unlock equity tied up in your home, but a smart plan is key. Here are some of the best ways Aussies are using their freed-up funds:
Top up retirement savings through a downsizer contribution into super.
Clear debts like personal loans, credit cards, or mortgages.
Invest smartly in income-generating assets like shares, property or term deposits.
Set up a rainy-day fund for healthcare costs, emergencies or travel.
Gifting to children or grandchildren (but always check Centrelink gifting rules first).
Don't rush into big decisions straight after settlement. Take a breather, understand your options, and choose a strategy that supports the lifestyle you want, not just today but for years.
Can you downsize without downgrading your lifestyle?
Absolutely. Moving to a smaller home is about picking a home that fits your next chapter, not just shrinking space.
What should I look for in a downsizer-friendly home?
Low maintenance: Modern materials, smaller gardens, easy-care living.
Single-level design: Ditch the stairs for good.
Accessibility: Wide doors, flat entries, and open plans are future-proof.
Light and space: Open layouts and smart storage make smaller homes feel bigger.
What should I pick: apartments, townhouses, and communities?
It's all about finding the right fit.
Apartments | Townhouses | Lifestyle communities |
Easy living close to shops, cafes and healthcare. | A bit more space, maybe a little yard. | Resort-style facilities like pools, gyms, and social hubs. |
Secure, low maintenance, often with lifts and shared facilities. | Look for ground-floor bedrooms or single-level layouts. | Purpose-built for active over-55s, but check contracts carefully. |
Should I look into regional or metro living?
You've got options and plenty of them.
Regional hotspots | Metro areas |
Bigger blocks, slower pace, more bang for your buck. | Walkable living close to hospitals, shopping and public transport. |
Healthcare access is improving thanks to government investment. | Often higher purchase prices but stronger long-term growth. |
Hot tip: Spend time in potential areas first. Visit at different times of the day and chat with locals. It's about lifestyle, not just location.
What should I be aware of aside from the purchase price?
When moving to a smaller home, factor in more than just the purchase price.
Strata fees: For building insurance, maintenance, lifts, pools, and gardens.
Community fees: If you're moving to a lifestyle village or retirement community.
Special levies: Unexpected costs for major building upgrades.
Always read the fine print. Ask for full fee disclosures before signing anything.
What potential risks should I be aware of?
Smart downsizing means going in with eyes wide open.
Undersupply of downsizer-friendly homes
Finding a well-located, single-level, low-maintenance property in high-demand suburbs can be tough. Start your search early and partner with an Aussie Broker or Buyer's Agent who knows the local market.
Delays with new builds or retirement villages
Construction delays are still a factor in 2025.
Off-the-plan settlements can blow out.
Lifestyle community waitlists are getting longer.
Plan and have a backup plan for temporary accommodation if needed.
Navigating contracts and fees
Strata rules: Check pet policies, renovation restrictions, and communal living terms.
Retirement village contracts: Understand ownership models, rights, and exit fees.
Exit costs: Deferred management fees can eat into resale proceeds.
Always get independent legal advice before you sign anything.
Mortgage impacts: What rising rates could mean
Rising interest rates could squeeze your budget if you're still carrying a mortgage or bridging finance when you downsize. An Aussie Broker can help you:
Lock in competitive fixed rates.
Set up flexible structures that suit your plans.
Make your transition as smooth as possible.
Did you know? Some retirement communities require a deferred management fee (DMF) or limit capital gains on resale. Always review contracts carefully or seek advice.
FAQs: Downsizing tips for retirees
Ready to unlock your next chapter?
Downsizing your home in 2025 is more than a change of address; it's a fresh start. At Aussie, we're here to help you do it right with expert advice, local insights and easy tools to make it smooth and stress-free. Talk to an Aussie Broker today, and let's unlock your next chapter together.
Watch back-to-back episodes of House Hunters every Friday night at 7.30pm.