Key takeaways:
Know why you're downsizing. Your goals will shape the home you buy, where you live and how you finance your move.
Budget beyond the purchase price. Factor in ongoing costs such as strata levies, legal fees and community charges.
Understand the financial impacts. Downsizing may affect your super, Age Pension and stamp duty costs.
Plan your move early. Consider your selling timeline, buying strategy and whether bridging finance may help.
Choose a home for the future. Prioritise low maintenance, accessibility and a location that suits your long-term lifestyle.
Ready to downsize? 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?
Downsizing is about more than moving to a smaller home. It's about finding a property that better suits your lifestyle, finances and plans. Your reason for moving will influence the type of property you buy, where you live and how you finance the transition.
Understanding your priorities early can make the process easier and help you make more confident decisions.
You're an empty nester. If the kids have moved out, your family home may now be larger and more expensive to run than you need. Downsizing could reduce maintenance, household costs and ongoing upkeep while giving you a home that's better suited to your current lifestyle.
You want a more accessible home. Your next move may be about practicality rather than space. A single-level home, townhouse or apartment may be easier to maintain and navigate if stairs, a large garden or ongoing maintenance are becoming more challenging. Planning may also reduce the need to move again.
You want to unlock equity. For many Australians, their home is their largest asset. Selling a higher-value property and buying a less expensive one may allow you to access some of the equity you've built. Depending on your circumstances, this could help reduce debt, fund retirement, create a financial buffer or contribute to super through the Downsizer contribution scheme.
Pro tip: Before making a decision, seek independent financial advice to understand any tax implications or potential impacts on your Age Pension entitlements.
You're looking for a lifestyle change. Downsizing can also support a different way of living. You might want a home that's easier to maintain, closer to the coast or regional Australia, or within easier reach of shops, healthcare, public transport and other amenities.
The right location depends on the lifestyle you want now and in the years ahead.
You want to live closer to family. Moving closer to children, grandchildren or ageing parents is a common reason to downsize. Being near your support network can make everyday life more convenient while helping you stay connected to the people who matter most.
You're entering a new stage of life. Changes such as retirement, a relationship change or living alone may mean your current home no longer meets your needs. A more manageable property can provide greater flexibility and better support your next stage of life.
Are you ready for the emotional side of moving?
Selling a home you've lived in for many years is often an emotional decision as well as a financial one.
It's natural to feel both excitement and uncertainty. While you're leaving behind a home filled with memories, you're also creating an opportunity to move into a property that's easier to maintain, better located and more suited to your future needs.
Taking the time to define both your practical and personal goals before you move can make it easier to choose the right property and approach the downsizing process with confidence.
You might also be interested in: The Aussie guide to downsizing: Everything senior citizens need to know
What should you do before selling your property?
Preparing before you list your home can help you make informed decisions, set realistic expectations and plan your next move with greater confidence.
1. Understand what your home is worth.
Knowing your property's market value is a good starting point. It can help you estimate how much equity you may have available and set a realistic budget for your next purchase.
You can estimate your home's value by:
Booking an independent property valuation.
Requesting a comparative market analysis from a local real estate agent.
Exploring recent sales, local price trends and suburb insights.
2. Research your local market.
Looking at recent sales can give you a clearer picture of buyer demand and how your home compares with similar properties. Focus on:
Sale prices of comparable homes.
Days on market.
Features buyers are paying a premium for, such as renovated kitchens, outdoor living or accessibility.
Whether local demand appears to be strengthening or easing.
This research can also help you decide whether now is the right time to sell.
3. Present your home at its best.
A well-presented home can make a stronger first impression and help buyers focus on its features. Before listing, consider:
Decluttering and removing personal items.
Completing minor repairs and touching up paint.
Improving natural light and tidying outdoor areas.
Highlighting accessibility features, such as level access or wider doorways, if relevant.
You don't necessarily need major renovations. Simple cosmetic improvements are often enough to improve presentation.
You might also be interested in: Tips for upgrading or renovating your home in 2025
4. Be selective with renovations.
Not every upgrade adds value. Before spending money, consider whether the improvement is likely to appeal to buyers in your local market. Cosmetic updates, such as fresh paint, new lighting or basic landscaping, may offer better value than large-scale renovations.
If you're unsure, ask a local real estate agent which improvements buyers in your area value most.
You might also be interested in: Top 10 renovations that add the most value to your home
5. Plan your timing.
There's no universal "best" time to sell. Local market conditions, buyer demand and your own circumstances usually have a greater impact than the season. Before listing, consider:
Current buyer activity in your area.
Recent sales trends.
Whether you'll buy before you sell, or sell first.
Your preferred settlement and moving timeline.
If you need to purchase your next home before selling your current one, it's worth exploring your finance options early. Depending on your circumstances, bridging finance may help you manage the transition between properties.
Should you renovate or sell as-is?
Before listing your home, it's worth considering whether any updates are likely to increase its appeal enough to justify the cost. In many cases, simple cosmetic improvements can make a stronger first impression, while major renovations may not deliver a worthwhile return.
Prioritise cosmetic improvements. Small, low-cost updates can help your home present well without significantly reducing your sale proceeds. Consider:
Fresh paint in neutral colours.
Tidying the garden and outdoor areas.
Updating light fittings, door handles or tapware.
Repairing minor wear and tear.
These improvements can help buyers see your home as well-maintained and move-in ready.
Consider the return on investment. Before spending money, ask yourself:
Will this make my home more appealing to buyers?
Is the likely increase in sale price greater than the renovation cost?
Are these updates expected in my local market?
If you're unsure, a local real estate agent can advise which improvements buyers value most in your area.
When does selling as-is make sense?
Major renovations aren't always worthwhile, especially if you're planning to move soon.
Projects such as a new kitchen, bathroom renovation or extension can be expensive and time-consuming, with no guarantee they'll increase your sale price enough to recover the cost. If your home is structurally sound, selling as is may be the more practical option.
What are the financial and tax implications of downsizing?
Downsizing can affect more than your housing costs. It may also influence your super, Age Pension entitlements, stamp duty and how you use the equity released from selling your home.
Understanding these implications before you sell can help you plan your next move with greater confidence.
Unlocking the Downsizer super contribution rules
If you're eligible, you may be able to contribute up to $300,000 from the sale of your home into your super (or up to $600,000 per couple). A Downsizer contribution:
Doesn't count towards your concessional or non-concessional contribution caps.
Doesn't require you to meet a work test.
May help boost your retirement savings.
To qualify, you generally need to meet the ATO's eligibility rules, including owning your home for at least 10 years and making the contribution within 90 days of receiving the sale proceeds, usually at settlement, and lodging the Downsizer contribution into super form with your super fund before or at the time you contribute, unless an extension is granted.
Because a Downsizer contribution may affect your broader retirement strategy, it's worth speaking with a qualified financial adviser before making a decision.
Could downsizing affect your Age Pension?
Your family home is generally exempt from the Age Pension assets test. However, once it's sold, the proceeds may be assessed differently. If you intend to buy another principal place of residence:
Money set aside for your new home may be exempt from the assets test for up to 24 months.
In some circumstances, Services Australia may grant an extension if delays are outside your control.
Funds not intended for your next home may be assessed under the assets test and deeming rules.
Because eligibility depends on your circumstances, consider seeking financial advice before selling, particularly if you don't plan to buy another home straight away.
Stamp duty concessions and retirement rebates (State-specific)
Some states and territories offer stamp duty concessions for eligible downsizers.
However, eligibility varies by state and territory and may depend on factors such as your age, concession card status, the type of property you're buying and its value.
Always check the latest rules with the relevant state or territory revenue office before signing a contract.
State or territory | Current position |
|---|---|
Eligible downsizers aged 60 and over may receive full stamp duty relief on eligible new homes, off-the-plan apartments or vacant land worth up to $2 million. Partial relief may apply above this threshold, subject to eligibility. | |
Eligible pensioners and concession cardholders may receive a full exemption on homes valued up to $600,000, with a partial concession available up to $750,000. The concession is generally available once. | |
Eligible pensioners may pay no conveyance duty under the Pensioner Duty Concession Scheme. From 1 July 2026, the property value cap has been removed. | |
The 50% pensioner downsizer duty concession ended on 30 June 2025. There is currently no replacement scheme. | |
NSW | There is currently no stamp duty concession specifically for downsizers. Standard transfer duty rules apply unless you're eligible for another concession. |
QLD | There is currently no dedicated transfer duty concession for downsizers or pensioners. |
Eligible buyers of new off-the-plan apartments, townhouses, villas, units, duplexes and triplexes may qualify for an off-the-plan duty concession. From 12 March 2026, the concession was expanded to include survey-strata dwellings, the value thresholds were increased, and the scheme was extended until 30 June 2028. Eligibility criteria apply. | |
NT | There is currently no dedicated stamp duty concession for downsizers or seniors. |
Stamp duty rules can change through state budgets or legislation, so it's important to confirm the latest eligibility criteria before you buy.
You might also be interested in: Stamp duty concessions for non-first-time home buyers
How can you use the equity you've released?
Selling a higher-value home may free up equity that can support your financial goals. Depending on your circumstances, you might use it to:
Contribute to super if you're eligible.
Repay your mortgage or other debts.
Build an emergency fund.
Invest for retirement income.
Provide financial assistance to family, taking Centrelink gifting rules into account where relevant.
Take time to consider how the sale proceeds fit into your long-term plans before making major decisions.
Pro tip: For advice about super, tax or Age Pension entitlements, it's also worth speaking with a qualified financial adviser.
How can bridging finance help downsizers?
One of the biggest decisions when downsizing is whether to buy your next home before selling your current one. Selling first may mean renting or staying with family while you search for your next property. Buying first can provide greater certainty but may require finance to bridge the gap between the two transactions.
This is where bridging finance may help.
Depending on your circumstances, bridging finance may help you:
Buy your next home before selling your current one.
Avoid feeling pressured to accept a lower offer on your existing property.
Move straight into your new home instead of arranging temporary accommodation.
Take more time to prepare and market your home for sale.
It's important to understand the costs, risks and repayment structure before deciding whether bridging finance is right for you.
For eligible customers, Aussie Bridge, powered by Bridgit, offers another way to bridge the gap between buying and selling. Key features include:
Loan terms of up to 12 months.
No monthly repayments during the bridging term.
Conditional approval in as little as 24 hours.
In most cases, no income verification required.
Available nationally for eligible owner-occupiers and investors.
Eligibility criteria, lending terms and conditions apply.
How Aussie can help: An Aussie Broker can help you compare your finance options, understand your available equity and determine whether bridging finance could support your downsizing plans.
You might also be interested in: Bridging loans and bridging finance explained: Your guide to buying before you sell
Can you downsize without downgrading your lifestyle?
Downsizing isn't about giving up comfort. It's about finding a home that better suits your lifestyle, budget and future needs. Rather than focusing on size alone, consider the features that will make everyday living easier over the years ahead.
What features should you look for?
Look for a home that's practical, comfortable and easy to maintain. Features to consider include:
Low maintenance: Smaller gardens, modern finishes and easy-care materials can reduce ongoing upkeep.
Accessibility: Step-free entry, wider doorways and spacious bathrooms can improve day-to-day convenience.
Single-level living: A house without stairs, or an apartment with lift access, may better suit your needs over time.
Practical storage: Built-in wardrobes and well-designed cupboards help maximise space.
Natural light: Open-plan layouts and large windows can make a smaller home feel brighter and more spacious.
Choosing a home with these features may also reduce the need for future modifications.
Which type of property is right for you?
The best option depends on your budget, lifestyle and long-term plans.
Property type | Who it's best for | Things to consider |
|---|---|---|
Apartment | May suit you if you want a low-maintenance home close to shops, healthcare and public transport. | Check strata fees, by-laws, accessibility features and lift access. |
Townhouse | May suit you if you'd like more space while reducing maintenance compared with a traditional house. | Look for single-level designs or ground-floor living if accessibility is important. |
Lifestyle or over-55s community | May suit you if you value community living and shared facilities. | Review ongoing fees, ownership arrangements and any deferred management or exit fees before committing. |
Should you move to a regional or metropolitan area?
Location can be just as important as the property itself. Think about how your next suburb will support your lifestyle now and in the future.
Often offer more affordable property prices. | Typically provide greater access to healthcare and essential services. |
You may be able to buy a larger home for the same budget. | Better public transport and walkable access to shops and amenities. |
Often appeal to those seeking a quieter lifestyle. | Easier access to family, social networks and community services. |
There's no single "best" choice. The right location depends on what's most important to you, whether that's affordability, staying close to family, healthcare access or a change of pace.
Before buying, spend time exploring potential suburbs, visit local amenities and consider how the area will meet your needs over the long term. The Aussie Property Experience can also help you compare suburbs, recent sales and local market trends before you decide.
You might also be interested in: Why rightsizing is taking over downsizing in Australia
What costs should you budget for beyond the purchase price?
The purchase price is only part of the cost of downsizing. Depending on the property you buy, you may also need to budget for ongoing fees, one-off charges and legal costs. Understanding these expenses before you buy can help you compare properties more accurately and avoid unexpected costs.
Ongoing ownership costs
Depending on the property, you may need to pay:
Cost | What it may cover |
|---|---|
Strata levies | Building insurance, maintenance of common areas, lifts, gardens, shared facilities, and administrative and sinking funds. |
Community or village fees | Maintenance of shared facilities, landscaping, recreational amenities and village management costs. |
Special levies | Unexpected or major works, such as structural repairs, roof replacements or upgrades to shared facilities. |
Conveyancing or solicitor fees, inspections, government charges, registration fees and settlement adjustments for rates or strata levies. |
Before buying a strata property, review the strata inspection report or owners corporation records to understand current levies and whether any major works are planned.
You might also be interested in: The upfront costs of buying a home
Understanding retirement village contracts
If you're considering a retirement village or lifestyle community, look beyond the purchase price.
Some contracts include:
Deferred management fees (DMFs).
Exit or departure fees.
Restrictions on capital gains.
Different ownership or lease arrangements.
These costs can affect how much you receive when you leave the village, so it's important to obtain independent legal and financial advice before signing a contract.
Pro tip: Before committing to any property, ask for a full breakdown of both upfront and ongoing costs.
What risks should you consider before downsizing?
Downsizing can simplify your lifestyle, but it's crucial to understand the potential risks before you commit. Planning can help you avoid unexpected costs, delays and financial pressure during the move.
Downsizer-friendly homes can be hard to find. Well-located, low-maintenance homes are often in high demand, particularly those close to healthcare, public transport and local amenities. If you already know where you'd like to live, start your property search early. More time can give you greater choice and reduce the pressure to compromise on location or features.
Your move may not go to plan. Buying off the plan, building a new home or moving into a retirement community can take longer than expected. Potential delays include:
Construction or settlement delays.
Waitlists for retirement or lifestyle communities.
Changes to expected move-in dates.
If you're buying before selling, think about how you'll manage the transition. Depending on your circumstances, bridging finance may be an option worth exploring.
Not understanding the full cost of ownership. Before signing a contract, make sure you understand the property's ongoing costs and ownership arrangements. Check for:
Strata or community fees.
Special levies for major repairs.
Retirement village ownership structures.
Deferred management fees (DMFs) or exit fees, where applicable.
If you're buying into a retirement village, it's particularly important to understand how exit fees, capital gains arrangements and other contract terms could affect your finances when you leave.
Review every contract carefully. Property contracts can include terms that affect your rights, ongoing obligations and future costs. Before committing, have the contract reviewed by an independent solicitor or conveyancer, particularly if you're buying into a retirement village or lifestyle community.
Consider how you'll finance the move. If you'll still have a mortgage after downsizing, or you're planning to buy before selling, make sure your finance strategy matches your budget and timeline. An Aussie Broker can help you understand your available equity, compare finance options and determine whether solutions such as bridging finance may suit your circumstances.
You might also be interested in: Downsizing done right: A smart guide for empty nesters
Ready to downsize? Here's what to do next
Downsizing is about more than moving into a smaller home. It's an opportunity to choose a property that better matches your lifestyle, finances and plans.
By understanding the costs, planning your timing and considering how your next home will support your long-term needs, you can approach the move with greater confidence.
Every downsizing journey is different, and the right approach depends on your circumstances. Whether you're weighing up when to sell, exploring your borrowing options or considering bridging finance, an Aussie Broker can help you understand your options and plan your next move.
When you're ready to take the next step, book a free^ chat with an Aussie Broker.