Let me paint you a picture.
You’re 62. You’ve lived in your Balmain terrace for 30 years. You bought it for $380,000 in 1995. It’s now worth $2.8 million.
Your super balance? $520,000.
You read online that you need “$1 million in super to retire comfortably.” You feel sick. You’re $480,000 short.
So you keep working. Five more years. Maybe ten.
Meanwhile, you’re sitting on nearly $3 million in property equity.
Here’s what nobody tells you: Your Balmain property might be the reason you CAN retire early – not the reason you can’t.
As a Balmain financial planner, I have this conversation at least once a week. Someone walks in worried about their “low” super balance, completely ignoring the fact that they’re sitting on one of the most valuable assets in Sydney.
Let me show you how Balmain property prices change the entire retirement equation.
“The $1 Million Retirement Myth”
Most retirement advice is written for average Australians in average suburbs.
You’re not average. You live in Balmain.
That distinction matters more than you think.
As of late 2025, the median house price in Balmain sits around $2.5-$3 million, depending on the street and property type.
Terraces? $2.8M-$3.5M+
Semi-detached? $2.2M-$2.8M
Apartments? $800K-$1.5M (depending on size and location)
If you bought before 2000, your property has likely increased 600-800% in value.
That’s not just wealth. That’s retirement leverage.
Let’s say you own your Balmain home outright (or nearly).
That property doesn’t count in the Age Pension assets test. It’s invisible to Centrelink.
So you could have:
Result? You likely qualify for a part Age Pension worth $15,000-$20,000/year.
But here’s where it gets interesting: You also have OPTIONS that most retirees don’t have.
When it comes to your Balmain property in retirement, you’ve got three main choices:
Keep your home. Retire mortgage-free. Live off super + Age Pension.
This works brilliantly if:
✓ You love your home and neighborhood
✓ Your super generates enough income (combined with Age Pension)
✓ You can afford ongoing costs (rates, insurance, maintenance)
✓ You’re not house-rich but cash-poor
Sell your $2.5M+ property. Buy something smaller/cheaper. Bank the difference.
This works brilliantly if:
✓ Your property is too big or expensive to maintain
✓ You need to boost your super/retirement income
✓ You’d prefer a modern, low-maintenance apartment
✓ You want to release equity while staying in the Inner West
Keep your home. Access some equity as cash. No ongoing repayments.
This works brilliantly if:
✓ You’re determined to stay in your home forever
✓ You need supplementary income but don’t want to sell
✓ You have no intention of leaving an inheritance
✓ You understand the costs and trade-offs
Let’s break down each option with real Balmain examples.
Michael and Susan, both 64, own their Balmain terrace outright (worth $2.9M).
Combined super: $680,000
They considered downsizing but decided to stay.
Why it worked:
Their super generates $38,000/year
Part Age Pension: $17,000/year
Total income: $55,000/year
Their costs (mortgage-free):
Total: $52,500/year
They’re comfortable. They love their home. They’re embedded in the community. They can walk to Darling Street for coffee, take the ferry into the city, and have friends within five minutes’ walk.
Staying put was the right call.
But I’ve also seen this:
Karen, 67, owns her Balmain terrace (worth $3.1M). Super: $420,000.
The house is too big. Maintenance costs $8,000-$12,000/year. Stairs are becoming difficult. Rates and insurance are $11,000/year.
Her super income: $23,000/year
Age Pension: $24,000/year
Total income: $47,000/year
But between housing costs and living expenses, she needs $58,000/year.
She’s asset-rich and income-poor. Every year she’s drawing down her super faster than sustainable.
She loves the house, but it’s slowly destroying her retirement.
Downsizing would solve everything – but emotionally, she can’t let go.
Staying in your Balmain home works if:
If you’re cutting back on travel, healthcare, or seeing family because you’re “house poor,” staying put is a mistake.
Downsizing from a Balmain house to a Balmain/Inner West apartment can release $1M+ in equity.
Let’s look at what that actually means.
“What $600,000 in Super Actually Buys You”
James and Linda, both 65, sold their Balmain house for $3.2M (after 35 years).
They bought a modern 2-bedroom apartment in Rozelle for $1.3M.
After selling costs, stamp duty, and moving expenses, they netted $1.75M.
Original super: $450,000 combined
They used downsizer contributions to add $600,000 to super ($300k each).
New super balance: $1.05M
The remaining $550,000 went into:
Their new situation:
Super income: $55,000/year
Investment income: $12,000/year
Total: $67,000/year (no Age Pension initially due to assets)
Their new costs:
Total: $62,000/year
They went from feeling financially stressed to having surplus income, a modern low-maintenance home, and money to help their kids.
Plus, as they strategically draw down their assets over the next 5-7 years, they’ll eventually qualify for part Age Pension, which will boost their income further.
Downsizing makes financial sense when:
✓ You can release $800K+ in equity
✓ You’re comfortable moving to a smaller property
✓ Your current property has high ongoing costs
✓ You want to boost retirement income significantly
But there are costs:
Example: Sell $2.8M house, buy $1.3M apartment
Agent fees: ~$70,000
Stamp duty: ~$60,000
Moving costs: ~$10,000
Total costs: ~$140,000
Net equity released: ~$1.36M
That $1.36M can add $60,000-$70,000/year to your retirement income if invested properly.
That’s life-changing money.
Most Balmain downsizers don’t leave the Inner West. They move to:
Rozelle: Modern apartments, still walkable to Darling Street, $1.1M-$1.6M
Lilyfield: Quieter, slightly cheaper, good transport, $900K-$1.4M
Annandale: Village feel, close to everything, $1M-$1.5M
Leichhardt: Great Italian precinct, excellent cafes, $1M-$1.6M
You stay in the area you love, keep your social connections, maintain the lifestyle – you just do it from a low-maintenance apartment with $1M+ extra in the bank.
Reverse mortgages get a bad rap. Sometimes deservedly.
But for the right person in the right situation, they can be useful.
You borrow against your home’s value. No repayments required. Loan is repaid when you sell or die.
Typical terms:
Example:
Your Balmain home: $2.5M
You’re 70 years old
You can borrow: ~$500,000 (20% of value)
Interest rate: 6.5%
After 15 years (age 85), the loan balance would be: ~$1.2M
Home value (assuming 4% growth): ~$4.5M
Remaining equity: ~$3.3M
I’ve seen equity release work well for:
Single retirees with very low super who are determined to age in place
Couples in their 70s who need extra income for aged care at home
People with no children or no intention to leave an inheritance
Homeowners who want to travel extensively in their 70s and don’t care about leaving maximum equity
Don’t use equity release if:
✗ You could downsize instead (almost always better financially)
✗ You’re doing it to support adult children (terrible idea)
✗ You don’t understand how compound interest works
✗ You’re in your 60s (way too early – you’ll erode too much equity)
Equity release should be a last resort, not a first choice.
Here’s something critical that most people miss:
Your property decision affects your Age Pension entitlement.
“How the Age Pension Actually Works”
Assessable assets: $600,000 in super (home doesn’t count)
Age Pension: Part pension (~$17,000/year for couples)
Assessable assets: $1.1M in super + $200k investments = $1.3M
Age Pension: Reduced initially (maybe $8,000/year), but as you draw down assets, pension increases
By age 75-80, you’re back to receiving significant part pension
Assessable assets: $600,000 super + $500k borrowed = $1.1M
Age Pension: Reduced initially, but debt reduces assessable assets over time
The strategy you choose affects not just your wealth, but your income for decades.
They obsess over their $600,000 super balance while ignoring the $2.5M sitting under their feet.
Your property isn’t just a place to live. It’s a strategic retirement tool.
They say “I’m never leaving this house” without ever calculating what staying is actually costing them.
Or they downsize impulsively without understanding the tax implications, Age Pension impacts, or optimal timing.
They finally decide to downsize at 75 when stairs are dangerous and mobility is limited.
Better: Downsize at 65-70 while you’re healthy, can manage the move easily, and have more years to enjoy the financial benefit.
They think it’s binary: Stay or sell.
But there are nuanced options:
Here’s the framework I use with Balmain clients:
Current property value: $______
Current super balance: $______
Current retirement income: $______/year
Current retirement costs: $______/year
Annual gap (if any): $______
Scenario A (Stay): What’s your income? What are your costs? Sustainable?
Scenario B (Downsize): Net equity after costs? New income? New lifestyle?
Scenario C (Equity release): How much can you access? What’s the long-term cost?
Emotional attachment to home
Health and mobility
Proximity to family/friends
Lifestyle preferences
Desire to leave inheritance
Don’t agonize for years.
Gather the facts. Model the scenarios. Make a choice.
Indecision is a decision – usually the wrong one.
If you own property in Balmain or the Inner West, you’re not “behind” in retirement planning.
You’re sitting on one of Sydney’s most valuable assets.
The question isn’t whether you have enough to retire.
The question is: Are you using your property strategically, or is it quietly sabotaging your retirement?
For some people, staying put is perfect.
For others, downsizing releases $1M+ and transforms their retirement.
For a small group, equity release provides needed flexibility.
But you won’t know which strategy is right until you actually run the numbers for YOUR situation.
Stop guessing. Start planning.
Should you stay in your Balmain home or downsize? The answer depends on your super, Age Pension, lifestyle costs, and goals.
The One Page Financial Plan models all three scenarios for your specific situation.
For $660 (inc GST), you’ll discover:
✓ What staying in your home costs you (vs downsizing)
✓ How much equity you could release and what it would mean for your retirement income
✓ The Age Pension impact of each property strategy
✓ A clear recommendation based on YOUR numbers and goals
✓ 100% satisfaction guaranteed
📧 Email: adam@suncow.com.au
📞 Phone: 0418 785 200
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Information provided by Suncow Wealth is general in nature and does not take into consideration your personal financial situation. It is for educational purposes only and does not constitute formal financial advice. Remember, the value of any investment can go down as well as up. Before acting, you should consider seeking independent personal financial advice that is tailored to your needs. Suncow Wealth Pty Ltd is a Corporate Representative No.441116 of AFSL 342766.