As the population continues to grow and the number of available housing properties unable to keep up, many realise how hard it can be to find rental properties and land titles within their desired budget.

But it can be particularly difficult for those who are retired and living on a tight budget.

The housing issue is more complex than many know, and, according to one particular economist, the idea of seniors downsizing their lifelong homes could turn out to be the answer to housing issues.

'It's quite a complicated process and we do need to make it simpler,' Downsizing Economist Michael Blythe said.

'We talk about a housing shortage in Australia, but what economists will tell you is we've got an excess of bedrooms, just not in the right place...maybe instead of first home buyers, we should be thinking about last home buyers.'

Downsizing may be one of the solutions to the housing crisis. Image source: pch.vector on Freepik.

Blythe stated that by urging retirees to downsize from the multi-bedroom houses they have settled in for decades—to smaller and more cost-efficient homes—larger homes that are more suitable for families could be freed up.

But not everyone wants to consider this option, and those who do, often find taking such a huge step this late in life is daunting.

Data showed that one-third of the baby boomer generation feels that their house might be too big for them.

Couple Ros and Ken Vaughn, aged 73 and 80, respectively, explained how the maintenance of their Carrs Park home—where they had lived for 38 years— was becoming too much for them, and they decided it was time to make a change.

'It wasn't an easy decision initially, but then I saw Ken up on the roof—the maintenance on this house was beginning to show,' Ros Vaughan said.

'We knew we had to find the right place for us, while we were fit enough to do it.'

The couple decided to move into Oasis Apartments in Peakhurst.

But while Ros and Ken may see downsizing as an ideal way to make their life simpler, the process of moving as well as freeing up the equity may not be as easy.

'They're asset-rich but cash-poor, and we need to find some way to rationalise that,' Mr Blythe said.

'We need to find a way to generate income for this group and get them into dwellings.'

There are options available on how to make the transition into a smaller house a breeze.

Those over 55 years of age are able to take advantage of the Downsizer Contribution Scheme, which means they can directly place $300,000 from the sale of their home into their super account.

'One of the hidden secrets of downsizing given the returns super funds generate, the average downsizer is looking at an extra $20,000.'

'It's essentially a deposit bond, so it's not like a reverse mortgage, it's not like bridging loans—all of which are quite expensive,' Mr Blythe added.

That said, the growth of online property platforms has made checking properties available more simple.

'There's mostly independent living (properties), there's retirement villages, there are land lease communities,' CEO of Downsizing.com.au, Amanda Graham said.

'Obviously people are very emotionally attached to their home, (but) it can free people up to have the sort of lifestyle that they want.'

Key Takeaways

• Seniors in Australia are being encouraged to downsize their homes which could help ease Australia's housing crisis.
  
• However, many retirees are hesitant due to the complicated process, upfront costs, and personal attachment to their homes.
  
• The Downsizer Contribution Scheme allows anyone over 55 to put up to $300,000 from the sale of their home directly into their super account.
  
• Moreover, some online property platforms offer solutions for those looking to move to a smaller property, including a comparative tool to compare available properties.
  

Members, what are your thoughts on downsizing? Would you consider doing this? Share your thoughts with us in the comments below!

 

[Judy HB]

It all depends on the person. If someone is enjoying their home and love having space for their families visits, enjoy! I might add seniors should be able to get help for roof work or ladder work. But if they want to downsize let’s have somewhere seniors can go to get help with it all. Let’s look after our older citizens and value them.

 

[BillW41]

Unfortunately, we have found the cost of a smaller home outweighs the benefits. Up to $50,000 in out of pocket sale and moving costs makes it impractical.

 

[cjw1960]

These so called experts are idiots! Why should seniors downsize to help solve the housing crisis? Seniors have done enough in their time to help with everything over time. There is a better solution to solving the housing crisis STOP people buying multiple homes, that would put Thousands of houses back into the market. All this is doing is making the rich richer and creating a have and have have not society, so a win Winn in my book.

 

[darrellh]

We have a 4 bedroom h9me, but have made it exactly how we want it and do not plan on selling it even when there is only 1 of us left. We feel safe here, close to all shops, buses etc so why would we sell up to suit the government and move to somewhere that is not as good. Not going to happen. Sooner get people in to help with what we cannot do as we get older and at least feel safe.

 

[Aspect2084]

All very well, but as there is such a shortage of housing overall, where are all the seniors supposed to go once they downsize, other than "retirement homes, etc" which a lot of them are not interested in living in.

 

[Observer]

Am all for the downsizing. Only draw back is if there isn't enough room and/or for one day you get on each others nerves, you got no where to run LMAO

 

[Inot54]

As the population continues to grow and the number of available housing properties unable to keep up, many realise how hard it can be to find rental properties and land titles within their desired budget.

But it can be particularly difficult for those who are retired and living on a tight budget.

The housing issue is more complex than many know, and, according to one particular economist, the idea of seniors downsizing their lifelong homes could turn out to be the answer to housing issues.

'It's quite a complicated process and we do need to make it simpler,' Downsizing Economist Michael Blythe said.

'We talk about a housing shortage in Australia, but what economists will tell you is we've got an excess of bedrooms, just not in the right place...maybe instead of first home buyers, we should be thinking about last home buyers.'

View attachment 31475

Downsizing may be one of the solutions to the housing crisis. Image source: pch.vector on Freepik.

Blythe stated that by urging retirees to downsize from the multi-bedroom houses they have settled in for decades—to smaller and more cost-efficient homes—larger homes that are more suitable for families could be freed up.

But not everyone wants to consider this option, and those who do, often find taking such a huge step this late in life is daunting.

Data showed that one-third of the baby boomer generation feels that their house might be too big for them.

Couple Ros and Ken Vaughn, aged 73 and 80, respectively, explained how the maintenance of their Carrs Park home—where they had lived for 38 years— was becoming too much for them, and they decided it was time to make a change.

'It wasn't an easy decision initially, but then I saw Ken up on the roof—the maintenance on this house was beginning to show,' Ros Vaughan said.

'We knew we had to find the right place for us, while we were fit enough to do it.'

The couple decided to move into Oasis Apartments in Peakhurst.

But while Ros and Ken may see downsizing as an ideal way to make their life simpler, the process of moving as well as freeing up the equity may not be as easy.

'They're asset-rich but cash-poor, and we need to find some way to rationalise that,' Mr Blythe said.

'We need to find a way to generate income for this group and get them into dwellings.'

There are options available on how to make the transition into a smaller house a breeze.

Those over 55 years of age are able to take advantage of the Downsizer Contribution Scheme, which means they can directly place $300,000 from the sale of their home into their super account.

'One of the hidden secrets of downsizing given the returns super funds generate, the average downsizer is looking at an extra $20,000.'

'It's essentially a deposit bond, so it's not like a reverse mortgage, it's not like bridging loans—all of which are quite expensive,' Mr Blythe added.

That said, the growth of online property platforms has made checking properties available more simple.

'There's mostly independent living (properties), there's retirement villages, there are land lease communities,' CEO of Downsizing.com.au, Amanda Graham said.

'Obviously people are very emotionally attached to their home, (but) it can free people up to have the sort of lifestyle that they want.'

Key Takeaways

• Seniors in Australia are being encouraged to downsize their homes which could help ease Australia's housing crisis.
• However, many retirees are hesitant due to the complicated process, upfront costs, and personal attachment to their homes.
• The Downsizer Contribution Scheme allows anyone over 55 to put up to $300,000 from the sale of their home directly into their super account.
• Moreover, some online property platforms offer solutions for those looking to move to a smaller property, including a comparative tool to compare available properties.

Members, what are your thoughts on downsizing? Would you consider doing this? Share your thoughts with us in the comments below!

I would gladly downsize in minute from my 5 bed home that’s falling down around my ears as the years pass. I live alone and have no other income except my aged pension. I want to move into a 2 bed unit. But the cost of a one bed is the cost of a small house and a two bed adds another $80k-$100k onto price. If the experts and government want us to downsize in addition to adding $300k into super (if people actually have super) how about removing sales tax the same as first home buyers? I’m in NSW and I know VIC does it.

 

[Clancieblue]

These so called experts are idiots! Why should seniors downsize to help solve the housing crisis? Seniors have done enough in their time to help with everything over time. There is a better solution to solving the housing crisis STOP people buying multiple homes, that would put Thousands of houses back into the market. All this is doing is making the rich richer and creating a have and have have not society, so a win Winn in my book.

Stopping people buying multiple homes won't stop the housing crisis. These homes are rented out to house someone who can't be bothered or just can't save a deposit. Does it matter who owns it, it is still a home to live in.

 

[IAN3005]

As the population continues to grow and the number of available housing properties unable to keep up, many realise how hard it can be to find rental properties and land titles within their desired budget.

But it can be particularly difficult for those who are retired and living on a tight budget.

The housing issue is more complex than many know, and, according to one particular economist, the idea of seniors downsizing their lifelong homes could turn out to be the answer to housing issues.

'It's quite a complicated process and we do need to make it simpler,' Downsizing Economist Michael Blythe said.

'We talk about a housing shortage in Australia, but what economists will tell you is we've got an excess of bedrooms, just not in the right place...maybe instead of first home buyers, we should be thinking about last home buyers.'

View attachment 31475

Downsizing may be one of the solutions to the housing crisis. Image source: pch.vector on Freepik.

Blythe stated that by urging retirees to downsize from the multi-bedroom houses they have settled in for decades—to smaller and more cost-efficient homes—larger homes that are more suitable for families could be freed up.

But not everyone wants to consider this option, and those who do, often find taking such a huge step this late in life is daunting.

Data showed that one-third of the baby boomer generation feels that their house might be too big for them.

Couple Ros and Ken Vaughn, aged 73 and 80, respectively, explained how the maintenance of their Carrs Park home—where they had lived for 38 years— was becoming too much for them, and they decided it was time to make a change.

'It wasn't an easy decision initially, but then I saw Ken up on the roof—the maintenance on this house was beginning to show,' Ros Vaughan said.

'We knew we had to find the right place for us, while we were fit enough to do it.'

The couple decided to move into Oasis Apartments in Peakhurst.

But while Ros and Ken may see downsizing as an ideal way to make their life simpler, the process of moving as well as freeing up the equity may not be as easy.

'They're asset-rich but cash-poor, and we need to find some way to rationalise that,' Mr Blythe said.

'We need to find a way to generate income for this group and get them into dwellings.'

There are options available on how to make the transition into a smaller house a breeze.

Those over 55 years of age are able to take advantage of the Downsizer Contribution Scheme, which means they can directly place $300,000 from the sale of their home into their super account.

'One of the hidden secrets of downsizing given the returns super funds generate, the average downsizer is looking at an extra $20,000.'

'It's essentially a deposit bond, so it's not like a reverse mortgage, it's not like bridging loans—all of which are quite expensive,' Mr Blythe added.

That said, the growth of online property platforms has made checking properties available more simple.

'There's mostly independent living (properties), there's retirement villages, there are land lease communities,' CEO of Downsizing.com.au, Amanda Graham said.

'Obviously people are very emotionally attached to their home, (but) it can free people up to have the sort of lifestyle that they want.'

Key Takeaways

• Seniors in Australia are being encouraged to downsize their homes which could help ease Australia's housing crisis.
• However, many retirees are hesitant due to the complicated process, upfront costs, and personal attachment to their homes.
• The Downsizer Contribution Scheme allows anyone over 55 to put up to $300,000 from the sale of their home directly into their super account.
• Moreover, some online property platforms offer solutions for those looking to move to a smaller property, including a comparative tool to compare available properties.

Members, what are your thoughts on downsizing? Would you consider doing this? Share your thoughts with us in the comments below!

BS...... why should we downsize? We are only playing into the hands of the elite wealthy..... they will have to wait till I die........

 

[mylittletibbies]

These so called experts are idiots! Why should seniors downsize to help solve the housing crisis? Seniors have done enough in their time to help with everything over time. There is a better solution to solving the housing crisis STOP people buying multiple homes, that would put Thousands of houses back into the market. All this is doing is making the rich richer and creating a have and have have not society, so a win Winn in my book.

But if people couldn't buy multiple homes there would be no rentals for those who can't afford to buy a home.
There will always be a have and have not society. Some people may be classed as "haves" who have worked hard all their lives, made sensible financial decisions and got somewhere. Others have either decided to live the welfare lifestyle, or maybe worked but wasted their money drinking, smoking, gambling, living on credit to outdo the Jones's.
Everyone is different. It's no use being jealous of those that have
My husband and I are certainly not wealthy, but we have two homes.
We spent years working long hard hours, made good money, lost money on.property through bad tenants trashing our rental, such is life.
We sold our home in the city, moved to the country and bought two homes, one a rental to help subsidise our pension. Does that seem unfair
There are very few rentals in our town, the young couple who rent our place were so happy to be able to get a home. We charge them $300/week which is less than half the WA rental cost. We also cover the first $400 of their power bill, so that means they are actually paying $250/week rent.
This couple would have nowhere to live if we didn't have two homes.
There are two sides to every story.

 

[Jacquidee]

This solves PRECISELY NOTHING of the housing crisis. The housing crisis exists because people can't afford housing. Those with no financial constraints can build or buy whatever they like, those who can't afford housing are the ones in crisis!

Elderly people selling their homes, whether to downsize or any other reason still want to be paid for the sale of their house. How does making a multi-bedroom house available for purchase assist anyone who can't afford it? This is one of the most ridiculous proposals I've read as a 'solution' to the housing problem.

 

[Bor!a2911]

I have another suggestion and that is, instead of seniors selling up and moving out of/away from the area in which they have lived for x number of years, why not Councils give permission for 'tiny' homes to be erected in the yards of homes, so seniors can still live in the areas they know and love, with their supports still in place? The seniors either rent or sell their main house, according to their financial situation/requirements/needs. If selling the house but maybe not the land, they still live on the property 'rent free'!

 

[mylittletibbies]

Maybe, if the government offered seniors a downsize grant and abolished the stamp duty, some of them may consider downsizing.
After all this is the generation who didn't get these benefits when they were first home buyers.

 

[cjw1960]

Stopping people buying multiple homes won't stop the housing crisis. These homes are rented out to house someone who can't be bothered or just can't save a deposit. Does it matter who owns it, it is still a home to live in.

Your comments are totally incorrect! Yes some of these houses are rented back but there is a great majority of people that have 3-4 or more houses to themselves. You can only live in one at a time!
plus a great majority of these type of people are politicians which is why they will not do anything about it.

 

[snooty]

No I wouldn't downsize as the money you get for your house won't even buy a downsized house. Most of the aged care facilities are out of range for me.

 

[snooty]

No I wouldn't downsize as the money you get for your house won't even buy a downsized house. Most of the aged care facilities are out of range for me.
Elma Speksnijder

 

[mylittletibbies]

Your comments are totally incorrect! Yes some of these houses are rented back but there is a great majority of people that have 3-4 or more houses to themselves. You can only live in one at a time!
plus a great majority of these type of people are politicians which is why they will not do anything about it.

And you get this information from where exactly???
A Great Majority of people own 3 or 4 homes which they use themselves.
What LaLa land do you live in???
Maybe a small minority of people do, but a great majority, get real!!.

 

[Littleboy8]

Am all for the downsizing. Only draw back is if there isn't enough room and/or for one day you get on each others nerves, you got no where to run LMAO

 

[NotNats]

As the population continues to grow and the number of available housing properties unable to keep up, many realise how hard it can be to find rental properties and land titles within their desired budget.

But it can be particularly difficult for those who are retired and living on a tight budget.

The housing issue is more complex than many know, and, according to one particular economist, the idea of seniors downsizing their lifelong homes could turn out to be the answer to housing issues.

'It's quite a complicated process and we do need to make it simpler,' Downsizing Economist Michael Blythe said.

'We talk about a housing shortage in Australia, but what economists will tell you is we've got an excess of bedrooms, just not in the right place...maybe instead of first home buyers, we should be thinking about last home buyers.'

View attachment 31475

Downsizing may be one of the solutions to the housing crisis. Image source: pch.vector on Freepik.

Blythe stated that by urging retirees to downsize from the multi-bedroom houses they have settled in for decades—to smaller and more cost-efficient homes—larger homes that are more suitable for families could be freed up.

But not everyone wants to consider this option, and those who do, often find taking such a huge step this late in life is daunting.

Data showed that one-third of the baby boomer generation feels that their house might be too big for them.

Couple Ros and Ken Vaughn, aged 73 and 80, respectively, explained how the maintenance of their Carrs Park home—where they had lived for 38 years— was becoming too much for them, and they decided it was time to make a change.

'It wasn't an easy decision initially, but then I saw Ken up on the roof—the maintenance on this house was beginning to show,' Ros Vaughan said.

'We knew we had to find the right place for us, while we were fit enough to do it.'

The couple decided to move into Oasis Apartments in Peakhurst.

But while Ros and Ken may see downsizing as an ideal way to make their life simpler, the process of moving as well as freeing up the equity may not be as easy.

'They're asset-rich but cash-poor, and we need to find some way to rationalise that,' Mr Blythe said.

'We need to find a way to generate income for this group and get them into dwellings.'

There are options available on how to make the transition into a smaller house a breeze.

Those over 55 years of age are able to take advantage of the Downsizer Contribution Scheme, which means they can directly place $300,000 from the sale of their home into their super account.

'One of the hidden secrets of downsizing given the returns super funds generate, the average downsizer is looking at an extra $20,000.'

'It's essentially a deposit bond, so it's not like a reverse mortgage, it's not like bridging loans—all of which are quite expensive,' Mr Blythe added.

That said, the growth of online property platforms has made checking properties available more simple.

'There's mostly independent living (properties), there's retirement villages, there are land lease communities,' CEO of Downsizing.com.au, Amanda Graham said.

'Obviously people are very emotionally attached to their home, (but) it can free people up to have the sort of lifestyle that they want.'

Key Takeaways

• Seniors in Australia are being encouraged to downsize their homes which could help ease Australia's housing crisis.
• However, many retirees are hesitant due to the complicated process, upfront costs, and personal attachment to their homes.
• The Downsizer Contribution Scheme allows anyone over 55 to put up to $300,000 from the sale of their home directly into their super account.
• Moreover, some online property platforms offer solutions for those looking to move to a smaller property, including a comparative tool to compare available properties.

Members, what are your thoughts on downsizing? Would you consider doing this? Share your thoughts with us in the comments below!

One of the saddest things is I have to downsize due to health. But my problem is that even though I'm one of the lucky ones, as my house is mortgage free. For me to sell my home and buy one with a smaller block of land, I will still have to get a small mortgage because of the price difference. I live out in a rural setting but would need to move closer to the town, and that' where the problems start. Also, I can't get a loan or a mortgage because I no longer work. So, I'm stuck.