Marguerite Taylor No Comments

In our previous blog we went through some of the factors seniors should consider when determining how they will obtain sufficient retirement income. As the choice can seem complex, we will discuss a few more considerations in this installment.

House size

Another important consideration, for those seniors considering whether downsizing or getting a reverse mortgage in Australia will be most beneficial for them, is the size of their house. The fact that so many senior individuals and couples live in houses with unoccupied rooms suggests that downsizing is their best option. This is often the case, but there are also many reasons why this may not suit the homeowner / homeowners. For some seniors, the cleaning and maintenance of such a home may become too great a burden and the associated costs may be prohibitively expensive. A largely empty house may simply not feel so homely anymore and at a more societal level, such over-consumption of housing can appear inappropriate.

These are all good reasons to downsize in some circumstances, but they certainly don’t apply to all seniors in large homes. Many older people enjoy their extra rooms and use them for housing visiting friends and relatives, storage or hobbies. Others are more than capable of maintaining their house and property and enjoy opportunities for gardening, painting and other tasks. When it comes to house sizes, we believe that seniors are entitled to make their own decisions about what is best for them. As retirement income experts Reverse Mortgage Financial Solution’s role is to give seniors as much advice and information as possible, so that they can make informed decisions.

Asset quality

If you are deciding between downsizing your home or a reverse mortgage in Australia, it is also important to recognise the quality and value of your assets and how they might be affected. The family home is likely situated on a well-proportioned block, with the land value making up a significant amount of the overall worth of the property. Downsizing typically results in a move to a unit or apartment with little or no land attached. This can have significant influence over the long-term investment value


Aside from the various financial and logistical considerations, there is another determining factor that is perhaps the most important of all. Although we cannot objectively measure or quantify it, most seniors have many years of happy memories invested in their home and neighbourhood. Understandably, attachment to family homes is a significant factor in the decision making process. Indeed, many seniors who opt for a reverse mortgage in Australia cite emotional wellbeing and the importance of their local community as the main reasons they decide to unlock the equity in their home rather than sell it.

As you have seen, there is a lot to consider, but each aspect is useful to determine just what is best for you and your home. Reverse Mortgage Finance Solutions is dedicated to working together with Australia’s seniors to help them make informed decisions that result in the maximum retirement income and the best lifestyle outcomes. Get in touch with one of our advisers today to discuss your individual situation.

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