The Rules of Downsizing (Part 7): The Hidden Math Behind “Just One More Bedroom”
I have lost count of how many times I have heard this sentence during a downsizing conversation:
“We just need one more bedroom… just in case.”
Just in case the kids visit.
Just in case the grandkids stay over.
Just in case friends come by.
Just in case someone needs to stay after a late dinner.
But here is the truth I gently share with clients and now with you:
The “just one more bedroom” mindset is one of the biggest financial traps in downsizing.
And it can cost far more than most people realise.
Let’s talk about the maths behind that extra room, and why it often makes less sense than it feels.
1. The Bedroom You Rarely Use Is the Most Expensive Room in the House
A spare bedroom sounds harmless, even practical.
But when you are downsizing, every extra room comes with a price tag.
A typical additional bedroom can add anywhere from $80,000 to $250,000 (or more) depending on the suburb, the building, and the market. And that is before you factor in:
• higher strata fees
• bigger utility bills
• additional maintenance
• a larger footprint to clean, heat, cool, and insure
In other words, a guest room you use 10 nights a year can quietly become one of the most expensive hotel rooms in Australia, and you are the one paying for it.
2. You Are Not Buying a Room, You Are Delaying Your Freedom
When people downsize, the goal is often to free up:
• time
• cash flow
• energy
• lifestyle options
Upsizing your downsizing (which is exactly what one extra bedroom often does) can delay all of that.
That extra room may mean:
• you cannot reduce your mortgage
• you cannot release as much equity
• you cannot enjoy the travel you planned
• you cannot improve your cash flow as much as you hoped
In some cases, it even keeps people working longer than necessary.
3. The Emotional Logic Makes Sense, but the Financial Logic Does Not
This part is straight from my client conversations and is also reflected in your document notes:
People are not really buying a bedroom.
They are buying belonging, family connection, and continuity.
They want the kids or grandkids to visit.
They want the home to feel welcoming.
They want to keep traditions alive.
And all of it is valid.
But here is the twist: You do not need a permanent spare room to achieve any of this.
Guests do not care if they sleep in:
• a fold-out sofa
• a Murphy bed
• a study that converts into a guest space
• the very good hotel two streets over
• or an Airbnb down the road
What they care about is time with you, not the floorplan.
4. The Hidden Cost of “Just in Case” Thinking
In behavioural finance, we call this loss aversion: the fear of losing something that once mattered, even if it no longer fits your lifestyle.
But what you gain by letting go can be far more valuable:
• lower costs
• lower stress
• more walkability
• lifestyle upgrades
• proximity to the water, shops, and cafés
• a home that suits your energy and mobility now
The biggest risk is clinging to space that belongs to a previous season of life.
5. The Better Strategy: Purpose Before Property
Before looking at listings, I ask clients one question:
“How often will this room actually be used?”
If the honest answer is “rarely,” then the better focus is:
• What lifestyle do we want?
• What mobility do we need?
• What can we comfortably afford long-term?
• What gives us the most freedom over the next ten years?
When clients shift the conversation from space to purpose, they almost always choose a smaller, smarter home.
6. This Is Not About Going Without, It Is About Living Better
Downsizing is not just smaller.
It is simpler.
It is more freeing.
It is more aligned with who you are now.
And often, letting go of that “just one more bedroom” is the moment everything clicks into place.
Final Word
If you are starting to think about downsizing, challenge the automatic assumptions.
You might not need the house you think you need.
And the right home, the one that fits your next chapter, might be smaller, easier, cheaper to run, and far more joyful than the one with that extra bedroom gathering dust.
If you want help running the numbers, thinking through the lifestyle trade-offs, or understanding how downsizing affects your long-term finances, we would be happy to guide you.
Book a complimentary 20-minute session and let’s talk about your next chapter.