Frequently Asked Questions

This chapter answers the questions nearly every family asks during the downsizing and aged-care journey.

1.    How do we know the time is right to downsize?

There’s rarely a single moment that makes the decision obvious. Most families begin thinking about downsizing when one or more of the following starts to feel uncomfortable:

• Safety becomes a concern (falls, stairs, isolation, burglaries, SCAM’s etc expand)
• Home maintenance feels overwhelming
• Loneliness increases
• Health or care needs begin to change
• The home no longer matches the lifestyle being lived

Downsizing doesn’t need to wait for a crisis. In fact, many families say the best outcomes come from acting before urgency forces the decision.

2.    Will we lose our independence if we downsize?

This is one of the most common fears and often the biggest misconception. Many retirees report that they actually gain independence after downsizing. Living in a safer, lower-maintenance home or a lock up and leave community often means less reliance on others, fewer physical demands, and more freedom to travel, socialise and enjoy life.

Independence isn’t about the size of your home, it’s about how confidently and comfortably you can live in it.

3.    What are exit fees?

Exit fees (often called Deferred Management Fees) are costs charged by some retirement villages when you leave or sell your unit. They typically increase over time and are capped at a maximum percentage.

For example:
A village may charge 3% per year for up to 10 years, meaning a maximum exit fee of 30%.

Exit fees reduce the amount you receive when you sell, so it’s critical to understand them fully before signing any contract.

4.    What happens to my pension if I sell my home?

Selling the family home can affect the Age Pension, but it depends on how the proceeds are used.

• If the money is reinvested into another principal residence, it is generally exempt from the assets test.
• If funds are retained as cash or invested, they may count toward the assets and income tests.

There are also temporary exemptions that allow retirees time to reinvest without immediate pension impacts. Because rules vary, financial advice is strongly recommended before selling.

5.    Can couples stay together if one partner needs high care?

Yes — in many cases. Modern supported-living communities and some aged-care facilities offer one- to three-bedroom units where one partner can receive care while the other remains independent. This allows couples to stay together longer, preserving emotional wellbeing and dignity.

Not all facilities offer this, so it’s important to ask specifically when researching options.

6.    What is an ACAT assessment and do we need one?

An ACAT (Aged Care Assessment Team) assessment determines eligibility for government-subsidised aged-care services. It’s required for access to residential aged care, home-care packages and some respite services.

An ACAT assessment:

• Is free
• Is conducted by a health professional
• Looks at medical, physical and cognitive needs
• Helps guide appropriate care levels

It does not force a move — it simply opens options.

7. How do RADs and DAPs work in aged care?

Aged-care accommodation costs can be paid in different ways:

• RAD (Refundable Accommodation Deposit):
  A lump-sum payment that is fully refundable when leaving care.
• DAP (Daily Accommodation Payment):
  A daily fee paid instead of (or alongside) a RAD.

Many residents choose a combination of both. The choice depends on financial circumstances and cash-flow preferences.

8. Is downsizing expensive?

With the right team of experts behind you and specialists in their fields downsizing does not have to cost a fortune. There are options across a wide price range, from affordable land-lease communities to premium retirement villages. Some high-end villages are so sought after that residents may even retain or share capital gains when selling.

Understanding entry costs, ongoing fees and exit structures early helps avoid surprises later.

9. Should children be involved in the decision?

Yes — when possible, involving adult children helps everyone feel supported and informed. Children can assist with research, attend inspections, help ask the hard questions and provide emotional reassurance.

Most importantly, shared decision-making reduces guilt and strengthens family relationships.

10. Do I need a downsizing service?

You don’t have to use a downsizing real estate service, but for many retirees and families, it becomes the single decision that frees up time, protects money, and removes enormous stress.

Downsizing is rarely just about selling a home. It often means juggling emotional decisions, family conversations, legal paperwork, care planning, decluttering, moving logistics, and financial considerations, all at the same time. Trying to manage this alone can quickly become overwhelming.

A downsizing real estate service helps by:

• Freeing your time so you’re not coordinating endless calls, quotes, and follow-ups
• Saving you money by knowing exactly what adds value—and what doesn’t—before a single dollar is spent
• Removing stress by managing timelines, sequencing, and details that commonly derail sales
• Avoiding “tradie horror stories” late arrivals, no-shows, changing quotes, poor workmanship
• Giving certainty on return clear advice on what improvements will deliver the best sale outcome
• Shielding families from decision fatigue at an already emotional time

At Hugo Alexander, downsizing isn’t treated as a standard property transaction. It’s a specialised, care-led service built around lived experience, trusted trade networks, and deep knowledge of what buyers actually respond to in the market.

With offices in Brisbane and on the Gold Coast, we offer clarity instead of confusion, confidence instead of second-guessing, and calm instead of chaos.

You can do it yourself. But many families discover that having the right team beside them means less overwhelm, better outcomes, and a smoother transition into the next chapter, without feeling rushed or alone.

That’s the difference a downsizing real estate service makes.

Glossary of Downsizing, Retirement & Aged Care Terms

ACAT / ACAS (Aged Care Assessment Team / Service)

A government assessment required to determine eligibility for subsidised aged care services, including residential aged care, respite care, and Home Care Packages.

Aged Care Facility (Residential Aged Care)

A purpose-built residence providing accommodation, meals, personal care, and nursing support for older Australians who can no longer live independently.

Capital Gains Tax (CGT)

A tax payable on the profit made from selling an asset, such as an investment property. The family home is generally CGT-exempt, but downsizing decisions should consider tax implications.

Deferred Management Fee (DMF)

Also known as an exit fee. A fee charged by many retirement villages when a resident leaves. Usually calculated as a percentage over time and can significantly reduce the final amount returned.

DAP (Daily Accommodation Payment)

A daily fee paid instead of a RAD, similar to rent. It is not refundable and continues for the duration of the resident’s stay.

EPOA (Enduring Power of Attorney)

A legal document appointing someone you trust to make financial, legal, and/or personal decisions on your behalf if you lose capacity.

Entry Contribution

The upfront amount paid to enter a retirement village or lifestyle community. This may not represent ownership and is subject to exit fees and contract terms.

Exit Entitlement

The amount returned to a resident (or their estate) after leaving a retirement village, calculated after deducting DMFs and other applicable fees.

Estate Administration

The legal process of managing and distributing a deceased person’s assets according to their will (or intestacy laws if no will exists).

Freehold

Ownership where you own both the property and the land. Capital gains may be retained by the owner, depending on contract terms and village structure.

Home Care Package (HCP)

Government-funded support that allows older Australians to receive care services at home, ranging from basic assistance to high-level care.

Leasehold

A form of ownership where you purchase the right to live in a property, but not the land. Exit fees and resale conditions usually apply.

Means-Tested Care Fee

An additional aged care fee assessed by the government based on income and assets. It may apply in residential aged care and some home care arrangements.

Probate

The legal process of validating a will and granting authority to the executor to administer the estate.

RAD (Refundable Accommodation Deposit)

A lump-sum payment made to an aged-care facility. It is generally fully refundable when the resident leaves or passes away (less any agreed fees).

Respite Care

Short-term care in an aged care facility or at home, designed to provide relief for carers or trial care arrangements.

Retirement Village

A community designed for older residents, offering independent living with shared facilities and varying levels of support. Contracts and fee structures vary widely.

Supported Living

A form of retirement living that provides private accommodation alongside services such as meals, cleaning, and personal care, often allowing residents to age in place.

Testamentary Trust

A trust established through a will, often used to protect assets, manage distributions, or provide tax benefits for beneficiaries.

Transition Care

Short-term care following hospital discharge, helping older people recover and regain independence before returning home or moving into longer-term care.

Will

A legal document outlining how assets are distributed after death and who is responsible for managing the estate.