can I afford to rightsize - Rightsize Your Home

Can I Afford to Rightsize?

In this post, Jenny Simmonds and Belinda Woolrych discuss how to know if you can afford to Rightsize.

Knowing whether you can afford to Rightsize is really part of the research and planning that should happen at the very beginning when you’re doing the Rightsize. It can also be all throughout your planning for retirement or whatever stage you’re at.

So to answer this question, it means sitting down with your team or group of people who know that you’re doing research and discussing what you need, where you’re going to go to, and what you’re going to get. Rightsizing your home is definitely the time where you’re dealing with one of the largest financial assets that you’ll have in your life. So if you’re ever going to engage experts, do it now, sit down and do some modeling. Have a look at what is associated with the actual Rightsize.

Most people are moving from the larger home into a smaller home. So, generally, the costs are at least negative or neutral. Most of the time, we’re able to release some capital in there as well to be able to invest. What is allocated in that process are any costs like getting the house ready, real estate agent fees, stamp duty, if that’s applicable, and things along those lines.

Your Team of Experts

Professional Services

It would require a valuation of the property, someone like yourself Belinda who is coming with a fresh set of eyes and looks at your property to see what needs to be done in order to prepare it and optimise the sale and of course, your financial planner.

It’s a team of experts around you:

  • who do this all the time
  • who can actually be able to give you an estimate on your house
  • have a fresh set of eyes to see what needs to be done

From my perspective or financial planners perspective, we have to let you know what you would need to release and what you can afford to buy for to meet all of your future goals.

People You Trust

It’s just having who you need to have around you. I’m often dealing with client’s children, family, friends or powers of attorney – just people that you trust to help be part of the team throughout this process.

And then of course, probably another one that jumps to mind would be someone who can read and interpret Retirement Living contracts or wherever the next property will be.

So, can I afford to Rightsize?

If you’re looking to buy into a retirement village or something along those lines, there are very different contractual arrangements. When you’re looking at the actual properties to purchase, you would need expert legal advice to make sure that:

  • you know what you’re signing up for
  • what you’re getting into
  • how to get out of it if you need to
  • what the conditions are of the new purchase.

The big values are the sale price. Interestingly, you need to get an estimation so you can get a value for your modelling and not necessarily a real estate agent at that point – just the valuation completed. 

Usually I sit down with clients to try to work out what the regular cost of living is. There’s a general guide regarding cost of living provided by ASIC that gets updated from time to time. So what do you need to have a modest sort of retirement if you’re a couple? Is it around that $60,000, per annum? But it does vary so I have some couples that can live on $40,000. I have others that need $80,000+. So we need to sit down and have a look at what a comfortable regular income means to you.

What is your goal?

It really depends on the client’s goals and wanting to change so it’s really important to have that plan so you know what you can set your sights on for the next step. There will be no surprises and you’re still not being financially strained.


There’s some amazing incentives that have become available. The government has recognised that downsizers have had restrictions in being able to get their surplus proceeds into super in previous years. So now, there’s the ability to put in $300,000 as an individual and $600,000 as a couple into super as a result of downsize if you’re over age pension age without having to go to work. So there’s things like looking at where that is going to go and how it’s going to be managed post downsize that can be discussed beforehand. That really makes the process a little less daunting knowing what’s likely how things are going to look afterwards.

Today’s blog is a nugget from last week’s Right Size Your Home Online Workshop. Join me as I take you through the Rightsize Your Home framework to help and support you move through the process effectively and efficiently with a practical, step-by-step roadmap on how to overcome the fears and challenges of Rightsizing and plan to make the journey a fun, stress-free and profitable process..

This Online Workshop is full of tips and guidance: How Can I Afford to Downsize?

With over a decade of experience as a Property Makeover and Change Specialist, I have spent many years helping transform homes and lives. My experience in helping those looking to Downsize has led me to write my first book – Rightsize Your Home – The Empty Nester’s Guide to a Stress-Free Downsize, available to download or in hardcover.

Let?s do something amazing. We transform property and change lives. How can we help you?

Do you love Rightsize Your Home Podcasts? Subscribe on iTunes, Spotify or Google and never miss an episode.

What is your biggest takeaway from this blog? Share with me in the comments.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.