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Downsizing Dover Heights: funding a luxury apartment move smartly

Thinking of selling a Dover Heights family home and moving into a luxury apartment? This guide walks through finance options, tax rules and sequencing so you can test a decision-ready plan this week.

23 Aug 2026Updated 27 Aug 20266 min read

Key Takeaway

This article explains how to downsize from a Dover Heights family home into a luxury apartment, covering finance structures, capital gains rules and superannuation strategies. It notes that most owner-occupied homes remain CGT-free, but reforms from 1 July 2027 introduce a minimum 30% tax on many capital gains and replace the 50% discount with CPI indexation. Readers learn how to sequence sale and purchase, choose safe loan-to-value ratios and consider downsizer super contributions so they can build a concrete plan this week.

Downsizing Dover Heights: funding a luxury apartment move smartly

Selling a Dover Heights family home and moving into a luxury apartment normally means three things: your old home is sold CGT‑free, you decide how much of the sale price to re‑tie up in the new place, and you choose whether to hold extra cash, super or investments with what’s left.

Here’s how to make those calls with clear numbers, not vibes.

Dover Heights downsizers reviewing finance plans in a luxury apartment Get your finance and tax settings right before you list your Dover Heights home.

Step 1: Clarify your numbers before you list

Work backwards from the apartment you actually want, not the one an agent says you can “stretch to”.

Example (indicative only):

  • Family home sale price: $6.0m
  • Selling costs (agent, marketing, legals): ~$150k
  • Net sale proceeds: $5.85m
  • Desired luxury apartment: $4.0m
  • Stamp duty + legals on purchase: ~$200k
  • Net spare capital if you buy in cash: ~$1.65m

Key questions this week:

  1. Do you want the apartment debt‑free, or are you comfortable with a modest loan (say 10–30% LVR) to keep more money in super or investments?
  2. How much annual after‑tax income do you actually need from the spare capital?
  3. What buffer do you want in cash/offset (for most Eastern Suburbs households, 6–12 months of living costs plus loan repayments is a practical target).

If you’re unsure about borrowing capacity in retirement or with lower work hours, read this alongside “Smart Ways Dover Heights Retirees Can Access Home Equity Safely”.

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Frequently asked questions

Will I pay tax when I sell my Dover Heights family home to downsize?▾
In most cases, you won’t pay capital gains tax because your main residence is exempt. CGT can apply to part of the gain if the property was rented, used substantially for business or includes excess land. The more significant tax considerations usually relate to how you invest the sale proceeds, especially after the 2027 CGT reforms.
Is it a good idea to keep a mortgage when downsizing in retirement?▾
A modest mortgage can be sensible if it lets you keep more funds in super or diversified investments, provided repayments are easily covered and you hold a strong buffer. The loan should sit at a low LVR with a clear exit plan. Problems arise when retirees over-borrow or rely on uncertain future sales to clear the debt.
How does downsizing affect my Age Pension and Centrelink benefits?▾
Your new home is generally exempt from the assets test, but surplus sale proceeds held in bank accounts, offset or investments are counted and deemed to earn income. This can reduce Age Pension payments. Structuring how much you put into your home, super and liquid savings is important, so get advice before you sell.

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