Top 10 downsizing mistakes to avoid

Thinking of trading big for better? You’re not alone.

For a growing number of Aussies over 50, downsizing isn’t just about shedding square metres — it’s about making space for more of what matters. Less stuff, more freedom. Less upkeep, more time for the good things.

But as exciting as it is, a move like this still comes with its fair share of gotchas.

Whether you’re leaving the family home or heading for a sea or treechange, here are some common downsizing mistakes to dodge — so you can start your next chapter with confidence.

Common traps when downsizing (and how to avoid them)

Downsizing isn’t about giving up — it’s about gearing up for something better. So, before you start packing boxes, take a moment to think about what your future lifestyle could really look like.

1. Not thinking long-term

A smaller house doesn’t mean smaller dreams. Ask yourself: will you want space for visiting grandkids? A veggie patch or a hobby room? Maybe you’re ready to ditch the mower altogether. Whatever you’re into — plan for it. This move is about making life easier now and later.

2. Ignoring the lifestyle outside your front door

Where you live is just as important as what you live in. Do you want to be close to the grandkids, or a cafe where they remember your order? Does a quiet spot in nature sound ideal — or are you more about community and connection?

Living Gems resorts are all about giving you the best of both — peace and privacy, with like-minded neighbours and facilities right on your doorstep.

3. Forgetting to budget for the extras

Selling your home can free up some cash, but there are still costs that sneak up on people — legal fees, moving expenses, stamp duty (if it applies), even new furniture that fits the space. Don’t let these catch you off guard. A clear budget means less stress and more freedom.

4. Leaving decluttering too late

It’s not just about getting rid of ‘stuff’ — it’s about keeping what’s meaningful. Start early, take your time, and don’t be afraid to let go of what no longer serves you. That way, your new place feels calm, clear and ready for what’s next.

5. Underestimating the emotional side

Moving out of a home filled with years of memories can be hard — even when it’s the right move. Give yourself time to reflect, say your goodbyes, and get excited about what’s to come. Feeling a little nostalgic is natural, but don’t forget: this isn’t the end of something, it’s the beginning.

6. Not measuring up (literally)

Will your favourite recliner fit in the new living room? What about the dining table? Grab a tape measure and be realistic. Downsizing is the perfect time to rethink furniture and embrace space-savvy, multifunctional pieces.

7. Forgetting about storage

Smaller doesn’t mean scrappier. Smart storage — built-ins, garage space, secure outdoor options — makes everyday life smoother. Think about what you use regularly, what you only need sometimes, and where it’ll all go.

8. Not checking the community vibe

Not all communities are created equal. If you’re buying into a retirement village, strata title, or a land lease community, make sure you understand the setup — from rules and fees to the facilities and social scene. Visit in person. Chat to residents. Read the fine print.

At Living Gems, our land lease communities are known for being welcoming, lively, and surprisingly luxurious — with no stuffy rules or surprise fees.

9. Skipping over the contract details

Some retirement village contracts come with complex terms, exit fees, or restrictions on resale profits. At Living Gems, our land lease model is refreshingly simple — no entry or exit fees, and you keep 100 percent of any capital gains. So, you can move in (and move on, if needed) without financial surprises.

10. Not getting the right advice

A good financial adviser can help you make sense of the numbers — from super contributions to pension eligibility and tax. And don’t forget about the Downsizer Contribution Scheme, which lets eligible over-55s boost their super with proceeds from their home sale (without affecting usual caps).