So, you’re thinking of downsizing your home. This can be a very exciting time, although there are some things that you may need consider.


  • What kind of property are you looking for?
  • How are you going to finance it?
  • Are you going to sell your home to purchase the property you want?


Get clear on what you want and need

First of all, you might not want to deal with a large garden anymore. Your house might be too big and you might be wanting a smaller house. Or you might like a little garden and a smaller house or the same size house and a small garden. There are so many options. I mention these things because it’s really important for you to decide what it is you want and need when downsizing your home. Some people think they want to downsize everything, only to realize that they still want a house the same size, but not a garden. Some people think they want a smaller house and no garden and then realize they’d still like a little area for some plants or some lawn. So carefully decide what it is you want to downsize to. It’s a good idea to keep a little checklist when you are looking.



Let’s talk about money. How are you going to purchase your new property? Is all your money tied up in your home? When it comes to downsizing your home, most of us are asset rich and cash flow poor. So, when you decide what it is you want to buy, it could be an issue for you if all your money’s tied up in your home. Buying ‘subject to’ (subject to the sale of your property) in a tight market, might not give you the best purchasing power. It also makes it a little tricky with moving in and out. The best you can do if you’re lucky, is time it with simultaneous settlements. This means that the person buying your property times settlement exactly to when you settle your new property. That would be an ideal situation, but it’s not always achievable.


However, there are some options.


Bridging finance

Bridging finance is a short-term loan, pending the arrangement of your longer-term financing. It might cost you a little bit, but it could be worthwhile to ensure you can purchase what you want. A finance broker may be a good person to talk to about this to check eligibility and costs.


Sell and rent

You could sell your property and rent for a little while, so you have the money ready to go when you find your dream home.


Stay with family

Or maybe you could just stay with the children. For heaven’s sake, they stayed with us long enough!


Use your super

You would need to check with your accountant and/or super specialist. There is strict criteria as to how and when you can use your super.


Sell to someone like me

If your property is a development site (there’s more value in the land than in the property itself), or a property that you can add value to by renovation, selling to somebody like me might be useful. I have helped many people in these situations. One lady was wanting to move interstate and needed some equity out of her property for a deposit. I was able to help her with that. Another gentleman was moving into an aged care facility, and he didn’t yet know which facility or when. I was able to be flexible and give him the time he needed to make these big decisions. And of course, when moving to an aged care facility, you need to pay a bond, so I was able to help him while he moved out of his home.


Sometimes it can be very difficult moving on from a family home. Just keep in mind that it served its purpose. You’ve enjoyed it. Now it’s time for somebody else to enjoy it. Or it may be a development site, which was the case with my home that I raised my family in. We chose to develop that and move on to a different location, slightly downsizing our home.


If you’re thinking that selling direct to a developer/ investor might work for you, give me a call and we can chat to see if your home is suitable. I am happy to share my experience and help you get the best outcome, whether this selling to someone like me, or not. To find out more about me and what I do click here. Good luck with downsizing your home. I hope this information has helped and that the process goes as smoothly as possible.


– Robyn