TrueCost is a new feature on Downsizing.com.au that gives you a clear, personalised breakdown of the costs of moving into a retirement village—before you sign anything. Powered by VillageGuru, a TrueCost Report shows your entry fees, ongoing charges, exit fees, potential equity, pension impact, and buyback timeframes in plain English. Simply look for the TrueCost badge on listings and tick the box to request your free report. It’s the easiest way to make one of life’s biggest financial decisions with confidence.
What Will Downsizing Really Cost?
Understanding your potential costs before you make a move could save you thousands. By Rachel Lane.
When people think about downsizing, they often focus on what they’re going to gain—the equity they’ll unlock, the pension they might receive, or the boost to their superannuation.
But just as important is what downsizing will cost. Selling your home, relocating, and moving into a new property (including a retirement village) all come with expenses. Understanding those costs upfront can help you avoid nasty surprises and make better financial decisions.
That’s exactly why Downsizing.com.au has launched TrueCost—a new type of listing that includes a personalised retirement village financial report, powered by VillageGuru. A TrueCost Report lays out your costs before, during, and after your move—including entry fees, ongoing charges, exit fees, and the impact on your pension or Rent Assistance.
Here’s a breakdown of the key costs you should factor into your downsizing plan.
TrueCost is a new feature on Downsizing.com.au that gives you a clear, personalised breakdown of the costs of moving into a retirement village—before you sign anything. Powered by VillageGuru, a TrueCost Report shows your entry fees, ongoing charges, exit fees, potential equity, pension impact, and buyback timeframes in plain English. Simply look for the TrueCost badge on listings and tick the box to request your free report. It’s the easiest way to make one of life’s biggest financial decisions with confidence.
What Will Downsizing Really Cost?
Understanding your potential costs before you make a move could save you thousands. By Rachel Lane.
When people think about downsizing, they often focus on what they’re going to gain—the equity they’ll unlock, the pension they might receive, or the boost to their superannuation.
But just as important is what downsizing will cost. Selling your home, relocating, and moving into a new property (including a retirement village) all come with expenses. Understanding those costs upfront can help you avoid nasty surprises and make better financial decisions.
That’s exactly why Downsizing.com.au has launched TrueCost—a new type of listing that includes a personalised retirement village financial report, powered by VillageGuru. A TrueCost Report lays out your costs before, during, and after your move—including entry fees, ongoing charges, exit fees, and the impact on your pension or Rent Assistance.
Here’s a breakdown of the key costs you should factor into your downsizing plan.
1. The Cost to Sell
Selling your current home typically involves:
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Agent’s commission: 1.5% to 3% of the sale price (on a $1 million home, that’s $15,000–$30,000)
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Marketing costs: photography, online listings, signage, floorplans, styling ($2,000–$6,000)
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Legal fees: conveyancing or settlement ($1,500–$3,000)
Total: $20,000–$40,000 on average.
2. The Cost to Move
Moving costs depend on distance and volume, but often include:
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Removalists: $1,500–$5,000
Decluttering/storage: skip hire, storage units, professional organisers ($300–$3,000+) -
Other costs: cleaning, utility reconnections, mail redirection, furniture replacement ($500–$2,000)
Total: $5,000–$10,000.
3. The Cost to Buy
If you’re moving into a retirement village, the cost isn’t as straightforward as a purchase price.
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Your entry cost may be called a loan or contribution
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Stamp duty usually doesn’t apply (saving you tens of thousands)
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Most villages charge a Deferred Management Fee (DMF) when you leave—commonly 25–35%, capped after a set period
The critical thing? Understanding not just what you pay going in, but what you’ll get out—and how soon—when you leave.
4. What It Means for Your Finances
Downsizing can reshape your financial future:
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Unlock equity to invest or boost your super via the Downsizer Contribution
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Improve cash flow by lowering housing costs
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Potentially qualify for or increase your Age Pension
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Possibly receive Rent Assistance (up to $212/fortnight for singles or $200 for couples)
Why Use a TrueCost Report
With so many moving parts—sales costs, relocation expenses, retirement village fees, and pension impacts—it’s easy to underestimate the true cost of downsizing.
That’s where a TrueCost Listing comes in. Powered by VillageGuru, your personalised TrueCost Report will:
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Break down entry, ongoing, and exit costs for your chosen village
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Show your likely exit entitlement and buyback timeframes
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Estimate impacts on your pension, rent assistance, and home care costs
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Compare up to three villages side-by-side
Look for the TrueCost badge on Downsizing.com.au listings and tick the box:
“Please send me a TrueCost Financial Report for this village”
Your report will be delivered directly by the village operator—giving you the clarity to make one of the biggest financial decisions of your life with confidence.
