Downsizing the Family Home: A Personal and Practical Guide

As the owner of Insurance Advisory Service (IAS), I often speak to clients about planning for life’s next stages. Today, I’m sharing a personal experience—downsizing my parents' family home—and offering practical tips for those of you navigating a similar journey.

A Family Journey: Moving Forward with Alzheimer's Disease

In 2015, my dad, Doug Brassett (the original founder of IAS), was diagnosed with Alzheimer's disease. Like many, our family’s journey to diagnosis wasn’t straightforward. We initially thought his hearing might be the problem. After confirming it was Alzheimer's, Mum dedicated herself to keeping Dad's quality of life as high as possible, exploring everything from medical treatments to alternative therapies.

Eventually, the reality set in that we needed to plan for their future living arrangements. We sought guidance from a trusted geriatrician, who stressed the importance of getting ahead of Alzheimer's. The decision to downsize was one we needed to make sooner rather than later.

This has been a significant change—downsizing from their family home of 47 years to a four-bedroom penthouse in Dee Why. While they are fortunate to have this opportunity, it’s not down to chance. Dad's excellent financial planning has meant they’re well-prepared, financially secure, and in a position to make choices that work for them.

Practical Tips for Downsizing

If you’re considering downsizing, for yourself or a loved one, here are a few key things to keep in mind:

• Start early: Downsizing isn’t just about moving house. It's a time to reflect on memories, organise belongings, and plan for a new lifestyle. Getting ahead of it makes it easier on everyone.
• Seek professional help: My parents’ transition was smoother thanks to a team of experts—a buyer’s agent, seller’s agent, interior designer, and professional packers. Don't hesitate to seek out support to take the pressure off.
• Work with a financial planner: A sound financial plan gives you options and peace of mind. It ensures you’re well-prepared for the next chapter of your life, whether it's for you or a loved one.

Downsizer Contributions to Your Super

For those over 55, a useful option when selling the family home is making a downsizer contribution to your superannuation. You can contribute up to $300,000 (or $600,000 as a couple) from the sale proceeds to your super fund. Find out more on the ATO's downsizer contributions page.

Free Resources to Help You Plan Ahead

For more insights on planning your financial future or navigating aged care, our free eBooks are here to help:

• Preparing for Tomorrow: A Practical Guide to Navigating Aged Care in Australia
• 10 Common Super Mistakes and How Not to Make Them
• Why Use IAS as Your Trusted Financial Advisor

If you’d like personalised advice to help you or your family prepare for the future, don’t hesitate to reach out. At IAS, we’re here to support you every step of the way.

Disclaimer: The content provided is general in nature and does not consider your personal financial situation. Please consult a financial professional before making any decisions.