As with any financial decision, especially one involving the sale and purchase of a home, a lot of planning is required. It is a significant life decision, and you need to explore the options to make sure it is right for you.

This is no different when it comes to downsizing your house for retirement, and a critical factor often overlooked in discussions about downsizing is the cost. Despite the potential profit from the sale of your home, downsizing can come with many hidden costs that should be weighed up.

• Stamp Duty: This varies from state to state and in some places, concessions may be available for ‘off the plan’ purchases.
• Legal Fees: You'll need to pay fees on the sale and purchase of your home.
• Preparing your home for sale: The little costs of primping your home and garden for sale can add up quickly. A fresh coat of paint or new carpet may seem like small upgrades, but they do add up over time.
• Buying and selling in a buoyant market: Given the current fluctuations in the housing market, it can be difficult to time it, so you buy in a lower market. It is possible that you may buy in a more resilient property market than you sold, one with an upward price trajectory.
• Sales Fees: These involve advertising, real estate commission and auctioneer costs.
• Building Inspection: It is good practice to have any potential home inspected per purchase to save future stress and expense.
• Moving Fees: Packing, sorting, and moving can all add up.
• Connection Fees: To get utilities established and set up.

To ensure you are well prepared to cover the costs of downsizing, it is a good idea to research the market and get a valuation of your current home.