Downsizing and moving in later life

Where you live shapes how you live. In later life, many Australians start to think about whether their home still suits them: the stairs, the garden, the distance from family and services, the cost of upkeep. Some decide to stay and adapt their home. Others move to something smaller, a retirement village or an over-50s community, or closer to family.

These guides help you weigh your options, understand land lease communities, plan the finances of downsizing and organise the move itself.

Guides in this section

• Over-50s and land lease communities Owning the home and leasing the land, site fees, laws, exit costs and how they compare with retirement villages.
• Downsizing your home Reasons to move or stay, housing options, costs, the ATO downsizer contribution, pensions and decluttering.
• Moving home checklist A timeline from three months out to settling in, including change of address and moving day.

Comparing your options

Staying put

Moving isn't the only option. Home modifications such as grab rails, ramps and better lighting, together with in-home support arranged through My Aged Care, can help you stay independent at home. See how aged care works.

Common mistakes

• Underestimating the costs of selling, buying and moving.
• Choosing a home that won't suit future needs.
• Overlooking site fee or exit fee terms.
• Leaving decluttering until the last minute.

Questions to ask yourself

1. What do I want my daily life to look like in five or ten years?
2. How close do I need to be to family, health services and transport?
3. What can I afford, including ongoing and exit costs?
4. Will the new home suit me if my health changes?

Making the decision together

Moving in later life often involves partners, adult children and sometimes carers. Decisions go more smoothly when everyone's views are heard, but the person who will live in the home should make the final choice. Some tips:

• Talk early, before a health crisis forces a quick decision.
• Write down what matters most, such as being near family, a garden, a pet or a particular doctor.
• Visit options together and compare notes afterwards.
• Be honest about money, and get independent advice rather than relying on family members to work it out.
• Be careful with arrangements that involve giving money to family, such as building a granny flat. Get legal advice and put agreements in writing.

Practical help

There are many services that can make a move easier, including removalists who specialise in seniors' moves, decluttering and estate clearance services, and professional organisers. Get written quotes and check what's included. Your local council may also offer information about community transport, home maintenance programs and services for older residents in your new area.

After the move

Settling in takes time. Many people feel a sense of loss after leaving a long-time home, even when the move was the right decision. Join activities, get to know neighbours, find a local doctor and pharmacy early, and keep in touch with old friends. If you moved into a village or community, ask about welcome programs for new residents. Give yourself a few months before deciding how you feel about the new home.

Costs to budget for

Whichever option you choose, build a realistic budget. Include selling costs such as agent commission, marketing and conveyancing; buying or entry costs such as stamp duty, legal fees and inspections; moving costs including removalists, storage and cleaning; and setting-up costs for furniture, appliances and any modifications. Then add the ongoing costs of the new home, such as strata levies, site fees or village charges, and compare them with what you pay now. Moneysmart has calculators and information to help.

Where to get information

• Moneysmart for information about downsizing, retirement villages and retirement income.
• The Australian Taxation Office for the downsizer contribution rules.
• Services Australia and its free Financial Information Service for pension rules.
• Your state fair trading or consumer protection agency for retirement village and land lease community laws.
• A licensed financial adviser and a lawyer for personal advice.

Moving closer to family

Moving near children or grandchildren can bring practical support and more time together, but it can also mean leaving friends, clubs and familiar doctors behind. Think about how often you'd really see family, whether they might move again for work, and how you'd build a new social life. Spending an extended stay in the area before you commit can help you decide.

Key points

Compare all your housing options, including staying at home with support. Understand the costs, contract terms and pension effects of each, check the ATO downsizer contribution rules, and plan your move well ahead.