Great question, particularly as some older Aussies worry about having insufficient superannuation savings against a backdrop of soaring living and medical costs. Hence, a quality, well-located, long-term family home could offer a potential solution. 

Better still, ‘empty nesters’ whose children have flown the coup can also help to address the housing supply crisis across Australia. They can do this by selling their larger homes, which have become surplus to their needs – and therefore making room for growing families to upgrade to more suitable digs. 

With these considerations in mind, “downsizing” or “rightsizing” into a more suitable home has plenty of merit. For some homeowners, downsizing is about streamlining their lifestyle and unlocking the equity in their long-term family homes. Others view downsizing as an opportunity to reduce debt and achieve financial independence.

Some empty nesters even choose to downsize to help their children take their first steps up the real estate ladder, while others simply relish the move to a new locale and lifestyle, with a smaller home and less financial stress. However, there are some considerations before making a move to downsize.

Shifting away from a long-term and familiar neighbourhood can be emotionally charged. Downsizers may initially feel lost in their new surroundings, especially if they are further from family and friends than they’re accustomed to. 

It is also important to know what facilities are available around the new home such as access to shops, transport, and hospitals. Often, it’s a good idea to spend a decent amount of time in a new suburb or town before making a move. A local Raine & Horne agent can also help you with local intelligence about a possible new home base and its features and benefits. 

Despite potential challenges, the advantage of downsizing is that it allows you to stay in the property market, enjoy the benefits of long-term price growth and stay fully in control of your housing circumstances. More importantly, downsizing can be a sensible strategy to tap into past capital gains and enjoy a low-maintenance and financially secure retirement.

To discuss your downsizing options, speak to a Raine & Horne agent today.