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.
Supersize Your Downsize
By Rachel Lane
When most people think about downsizing, they picture a smaller home, a simpler life, and unlocking some equity from the family home.
But what if you could supersize your downsize—and actually come out ahead financially?
It may sound counterintuitive, but spending more on your next home—when done strategically—can result in more Age Pension, lower retirement village fees, and greater flexibility if you need to fund aged care in the future.
That’s exactly the kind of insight you’ll find in a TrueCost Report—a new consumer tool on Downsizing.com.au, powered by VillageGuru. A TrueCost Report breaks down your entry fees, ongoing costs, exit fees, and pension impacts, so you can confidently compare your options before you commit.
Two Ways to Supersize Your Downsize
1. Choose a Higher-Spec Home
The first and most obvious way to “supersize” is simply to choose the more expensive home:
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Upgrade from a one-bedroom to a two-bedroom
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Opt for a property with a balcony, courtyard, or premium view
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Select a corner unit with extra light and privacy
These upgrades can enhance your day-to-day lifestyle and potentially add resale appeal.
2. Change How You Pay for Your Retirement Village Home
Many retirement villages offer different payment models. Some allow you to pay your Deferred Management Fee (DMF) upfront, while others give you the option to pay no DMF at all in exchange for a higher entry price.
Paying your management fee upfront can:
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Reduce or eliminate your exit fee when you leave
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Increase the amount you retain if you move into aged care later
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Potentially boost your Age Pension (by lowering your assessable assets)
Example: Why Payment Choice Matters
Sally is moving to a retirement village offering two payment options:
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Option A: Pay a 30% exit fee when she leaves
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Option B: Pay the management fee upfront for a reduced rate of 20%
Her unit price is $500,000.
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Under Option A, if she stays more than 5 years, her exit fee is $150,000, leaving her $350,000.
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Under Option B, she pays $100,000 upfront, making her total entry cost $600,000, but she receives $500,000 back when she leaves—$150,000 more than under Option A.
If Sally’s pension was affected by the assets test, paying the fee upfront could also increase her pension by $7,800 a year.
Why Use a TrueCost Report
Comparing payment options isn’t always straightforward. A TrueCost Listing lets you request a personalised report, powered by VillageGuru, that:
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Compares different homes or payment models side by side
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Shows total costs, pension impacts, and exit entitlements
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Outlines how much you’ll get back—and how soon—if you move into aged care
Look for the TrueCost badge on Downsizing.com.au listings and tick the box:
“Please send me a TrueCost Financial Report for this village”
With so many moving parts in retirement village contracts, TrueCost gives you the clarity to make the smartest financial choice for your next chapter.
Rachel Lane Presents Our TrueCost Editorials Series
- TrueCost Launch: A New Way to Downsize with Confidence
- Five Steps to Calculating a Retirement Village Exit Fee
- What Will Downsizing Really Cost?
- Supersize Your Downsize
- Top 5 Downsizing Tips
- Am I a Homeowner?
- How Much Can You Have and Still Get the Age Pension?
