The property at 1 Ocean Street, Kilcunda, which took two years to design and build, has been the backdrop for countless family moments - Christmas lunches on the deck, whale watching from the balcony, and daily beach walks with the dog.
But Mr Smits said due to a devastating cascade of health issues starting in 2024, he can no longer maintain living at the five-bedroom property.
Mr Smits revealed he underwent surgery for two brain aneurysms, a full knee replacement, and the removal of a benign salivary gland tumour.
He developed Polymyalgia rheumatica, an inflammatory arthritic disorder requiring daily steroids, and was diagnosed with prostate cancer late last year.
"Apart from my children, it's the best thing I've ever built," Mr Smits said.
"I really don't want to leave it."