Downsizing - Henry & Sylvia

Henry and Sylvia married relatively late in life. Before that, they'd both lived in rental accommodation. They decided to buy a small but old home in a good suburb. In 1989, it cost them $90,000.

When they gave up work, they still had a mortgage of $40,000. Both received a pension from an employer scheme and New Zealand Super. Initially, Henry did a few gardening jobs to help with living costs. But back problems forced him to give that up and the couple began to struggle to make ends meet.

The area they lived in had become quite fashionable and the house was now worth $300,000. They talked to Sylvia's sister who lived in a rural town a couple of hours away. She told them they could buy a house for about $220,000 in her area.

Their new home is big enough for friends to visit and has a small, established garden to potter in. They are now mortgage free and have $40,000 extra to live on. The move has provided them with financial security and some comfort to relax and enjoy their retirement.