Downsizing Guide · Updated October 2026
Your Guide to Downsizing: Plan It Right, Enjoy It More
Kids moved out? Home too big to keep up with? Downsizing can be a challenge, but it does not have to be if you plan it properly.
Here are the steps, decisions and 2026 incentives to work through before you move.
Start With Your Reasons
Be clear from the start about what you are trying to achieve and why. Is it about money, maintenance, health, being closer to family, or a sea or tree change? Your reasons decide everything else: the area, the type of home, the budget and the timing.
Think about lifestyle too. A quieter life, a coastal town, a lock-up-and-leave apartment near the city: plan for the life you want, not just the house.
Five Steps to a Smoother Move
Downsizing sounds simple, but there are a lot of moving parts. Work through these in order:
- Value your home. Get a realistic idea of its market value, and whether it could be worth more to a developer. See what is my home worth?.
- Look for upside before you sell. A renovation, a subdivision or a second dwelling can lift the result. See build or renovate.
- Do the numbers. Sale price, less any mortgage, agent fees and moving costs, less the cost of your next home and its stamp duty. Talk to your accountant and a mortgage broker if you will need a loan.
- Decide the order. Sell first, buy first, or buy off the plan with a later settlement. Matching your exit and your move-in dates saves stress and money.
- Plan the move. Use a downsizing checklist, from sorting and packing to connecting services at the new home.
Less Is More
Most of us gather far too much over the years. Make a list of everything in the house and work through it room by room: what goes with you, what goes to family, what you sell, donate or store.
Give yourself time with sentimental items. Think of it as a fresh start, because that is exactly what it is. Many downsizers also use this time to buy new furniture sized for the new home.
Be ready to compromise too. You may end up with one car space instead of two, or a ten-minute walk to the shops instead of two. Knowing what you will and will not compromise on makes the search much easier.
Government Incentives for Downsizers
The incentives have improved since we first wrote this guide:
- Downsizer super contribution: from age 55 (it was 65), you can add up to $300,000 each from the sale of a home you have owned for 10 years or more. See Super benefits for downsizers.
- Age Pension: if you sell and plan to buy or build your next home, the proceeds set aside for it can be exempt from the assets test for up to 24 months (sales from 1 January 2023).
- Stamp duty: some states offer duty concessions for pensioners or seniors buying a home. Check your state revenue office.
Take the emotion out of it and make sure the numbers work. If they do not, change the plan, not your retirement.
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Tell us where you are now and where you want to be. We will help you work out the options for your home and your next move.
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Sources: ATO: Downsizer super contributions; Services Australia: Real estate assets. General information only, current as at October 2026. Rules change: confirm your position with a licensed adviser.
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