For most families, the home is both the largest asset and the most emotionally charged one. The good news is that moving into residential aged care does not force you to sell it. What matters is understanding how the home is treated, and which option suits your situation.
How the home is treated in the means assessment
When Services Australia works out your aged care fees, your former home may be counted as an asset - but with important protections. If a "protected person" (such as a spouse, or in some cases a dependent or long-term carer) still lives in the home, it is generally exempt from the assessment. Where the home is counted, only a capped value is included, not its full market value. Because these rules are detailed and change over time, confirm the current position through My Aged Care or a specialist adviser.
Your main choices
Keep the home
Many families keep the home and rent it out, using the rental income to help meet aged care costs such as a daily accommodation payment. Keeping the home preserves an asset and can suit families not ready to sell.
Sell the home
Others sell the home to fund a refundable accommodation deposit (a lump sum that is refunded when the resident leaves). Selling can simplify finances and free up capital, but it is a bigger, more final step.
How this links to paying for your room
The home question is closely tied to how you pay for accommodation - as a lump sum (RAD), a daily payment (DAP), or a combination. Our guide on RAD vs DAP explains that decision, and our costs guide covers the bigger picture.
Because the home affects your pension, your aged care fees and your estate all at once, this is the area where independent financial advice pays for itself. An aged care financial specialist can model keeping versus selling for your exact situation. When you are ready to talk options with us, register your interest - there is no obligation.