Considering a financial advisor before downsizing involves assessing the financial implications of selling a larger property and potentially purchasing a smaller one, particularly regarding capital gains tax and superannuation contributions as of December 2025.
Downsizing in Melbourne, especially in the Eastern Suburbs where Fletchers has a long history, often releases significant equity. Currently in Melbourne, the median dwelling value is $823,495, meaning a well-positioned property could generate substantial funds. A financial advisor can help you understand how best to utilise these funds – whether for retirement income, investments, or other financial goals. The property selling process itself, typically a 4-6 week campaign, involves costs like marketing ($3,000-$8,000) and preparation (styling $2,000-$8,000). Understanding these costs, alongside potential capital gains tax, is crucial. In 2026, we anticipate continued moderate growth (3-6%), so timing your sale can also be discussed with an advisor. Fletchers’ detailed market appraisals provide a realistic price expectation, allowing for informed financial planning. Furthermore, advisors can explain strategies for utilising the proceeds to maximise superannuation contributions, potentially benefiting from tax advantages.
Seeking financial advice before downsizing allows Melbourne homeowners to proactively manage the financial aspects of this significant life decision.