Downsize sooner rather than later

"There are all sorts of reasons why it makes sense to downsize," says Duane Brinkmeyer, project director at Villa Estate in Bungendore.

From a financial standpoint "You get yourself a smaller property that leaves money over for retirement," he says, especially when you move somewhere that offers very good value for money.

Mr Brinkmeyer also believes there are "a lot of people [home owners] who are now asset rich [due to the growth of house prices over the years], but income poor," and downsizing is going to free up some of that capital for other things you may need or want.

You may also wish to use some of that leftover money to help family.

From a practical perspective, a smaller home is going to be much easier to look after and maintain.

As Mr Brinkmeyer pointed out, in older homes especially, maintenance can start costing more money, and a smaller home is also likely to cost less to heat.

Villa Estate Bungendore. Contact Melissa Martin-Smith at Luton Projects, 0412 765 198

Mr Brinkmeyer 's other observation is that many people put off the decision to move, eventually downsizing when it's more challenging to do so for a number of reasons, including health and mobility.

"The biggest mistake a lot of people make is they leave it too late [to downsize]," he says.

When it comes to downsizing, there are a few financial models offered.

Mr Brinkmeyer presents a compelling argument that offering freehold title is the best one for the residents from a financial perspective.

"Freehold title gives the best financial outcome," he says.

The project they are constructing in Bungendore - now well into Stage 2 - is being sold as freehold title for this very reason. This is because with a freehold title, you own it, and you can decide the price to offer when your, or your family, sell it.

If you need to move somewhere else for any reason you can sell it without any exit fees, or rent it to someone else who is over 55 or a person with a disability, or leave it to loved ones in your will, and they can benefit from selling or renting it.