Thinking of delaying downsizing? It could cost you more than you think

Opinion

October 28, 2026 — 5:01am

The most common downsizing regret I hear isn’t selling at the wrong price, it’s not making the move sooner. When property prices fall, it is tempting to put your downsizing plans on hold.

Nobody wants to sell their home for less than they think it was worth six months or a year ago. But before you decide to wait, ask yourself three questions.

Have you really lost money or just missed the peak? If you have owned your home for decades, chances are you bought it for a fraction of what it is worth today. Even if the market has softened, you can still be selling for a considerable profit.

Take a home that was worth $1.2 million at the start of the year but could achieve $1.1 million today. If you bought it for $250,000 three decades ago, you might feel you have lost $100,000. In reality you are selling for $850,000 more than you paid, before allowing for inflation, improvements and ownership costs.

The old investment mantra “time in the market, not timing the market” is worth heeding. You will never pick the top or the bottom of a market – no one can. You only know the top has passed when prices fall, and the bottom was reached when prices start recovering.

The property market moves in cycles; “riding it out” could mean waiting years. Exactly how long depends on how much further prices fall and how quickly they recover. There is no guarantee the price you are chasing can be achieved again and it’s a very real risk that you end up selling for less than you could have today.

What could your home buy you today?

Every home costs money to hold, and rates, insurance and maintenance continue regardless of market changes. There is also an opportunity cost. The money tied up in your home could be released to invest, spend or buy a more suitable property (or a combination thereof).

If you are selling one home and buying another, your next home may also change in value, and not necessarily in the same direction or at the same rate. Changes in the property market don’t affect every property in the same way at the same time.

What matters is not just what you sell your current home for but what it will cost to move and how much you will have left over.

How do you want to spend the next chapter?

The cost of waiting is not just financial. It can affect your health, happiness and independence. If staying means struggling with stairs, battling maintenance or becoming socially isolated, what is the price of holding on?

Your home might be worth more in the future but that does not guarantee you will be better off. Where you live affects how you live, so your lifestyle deserves a place in the decision.

When it comes to downsizing decisions, sometimes the biggest loss is not the money you think you have missed out on but the time spent waiting for the perfect moment to begin your next chapter.

Rachel Lane is the author of Downsizing Made Simple, a book and website aimed at demystifying downsizing.

• Advice given in this article is general in nature and not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

Expert tips on how to save, invest and make the most of your money delivered to your inbox every Sunday. Sign up for our Real Money newsletter.

Rachel Lane is author of the bestselling book Aged Care, Who Cares? and Downsizing Made Simple with fellow finance expert Noel Whittaker.

From our partners