Downsizing – will it be enough to fund your retirement?

We often meet people who assume that downsizing will unlock a big chunk of money to help fund their retirement. The idea makes sense on paper: sell the family home, buy something smaller, and invest the difference. But in the Tasman region, the numbers can tell a different story.

Take Richmond, for example. According to recent REINZ data, the median sale price for a two-bedroom home is around $695,000. That’s not a massive drop from the average family home price across the region. By the time you factor in agent fees, legal costs, moving expenses, and potential renovation or body corp costs, the net gain may be far less than expected.

Also give some thought as to whether there are houses in your community that you would be happy to downsize to. Some of our rural locations such as Mapua, don’t have a ready supply of smaller houses on smaller sections for people to move to in their later years. Often people are then forced to move elsewhere in the Nelson/Tasman region and thereby lose their community.

So here’s the real question:

Will downsizing actually be enough to fund your retirement?

If that’s the plan, it pays to step back and crunch the numbers properly. Start with a conversation with Glyn. He can help you figure out how much income you’ll need in retirement and whether downsizing alone can get you there, or if other strategies need to come into play.

Sometimes the right move isn’t just about property it’s about planning.