Calculating equity release from downsizing involves determining the difference between your current property’s sale price and the cost of your new home, factoring in associated selling and purchasing expenses. This released equity represents funds available for other purposes, such as retirement, travel, or investments.
As of December 2025, Melbourne’s property market sees a median dwelling value of around $823,495. When considering downsizing in the Eastern Suburbs – areas like Balwyn, Doncaster, and Ringwood – sellers typically encounter a campaign length of 4-6 weeks. The equity calculation begins with a comprehensive property appraisal from an agent like Fletchers, factoring in current market conditions and buyer preferences. Remember to account for selling costs: agent commission (typically 1.5-2.5%), marketing expenses ($3,000-$8,000 for a full campaign), and property preparation costs like styling ($2,000-$8,000) and minor repairs. Subtract these from the sale price. Then, deduct the purchase price of your new property, including stamp duty and legal fees. Currently in Melbourne, stamp duty varies based on property value and whether you’re a first-home buyer. In 2026, buyers continue to favour properties with good light and renovation potential, influencing sale prices. The remaining amount is your released equity.
Understanding these components allows Melbourne homeowners to realistically assess the financial implications of downsizing and plan accordingly.