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!

 

[marni]

That sounds horrible

Not really horrible as I now have water views - not possible in my previous home. We do not own the land in Land Lease so price to purchase is soo much cheaper, also you do not pay stamp duty when purchasing. which allows you to enjoy your retirement having money to spend. Housework is a breeze, and have more time for hobbies which I do outside the village. The main reason I downsized was that when you buy a motorhome it is hard to just leave a large house - in a leisure village you just lock the front door and go - sometimes for six weeks, other times longer or shorter - as I said there are pros and cons.

 

[marni]

That sounds horrible

Not really horrible as I now have water views - not possible in my previous home. Housework is a breeze, and have more time for hobbies which I do outside the village. The main reason I downsized was that when you buy a motorhome it is hard to just leave a large house - in a leisure village you just lock the front door and go - sometimes for siz weeks, other times longer or shorter - as I said there are pros and cons.

 

[Littleboy8]

About 6 years ago I did downsize to a lifestyle village , but it was not the lifestyle I was after . A lot of people are bored and nosy what you are up to , as soon as you get outside . A lot of backstabbing and people dob each other in for the very minor issues .That house was a lot cheaper as our previous house , so you had money in the bank and that is what the government after , so you do not live on a pension . I have looked after myself very well and do not think I will ever be on a pension . Build a new house on 3000m block and very happy , so I upsized again and we have a lovely neighbourhood in a small village. Still finishing off the yard with plants , retaining wall and pool area . Every morning having a good coffe on the deck and looking at the water birds . Never looked back. .

My mother did the same as you,hated the village life said they were whiny old nosy bored geriatrics.she bought a beautiful small house in a court next to a house that had disadvantaged young people in it. Talk about love it they used to hang over the fence and yabber with her, helped her do her gardening etc.she had a great life there until the end.

 

[mylittletibbies]

I was thinking exactly the same about you “What planet do you live on” never mind I walk around with my eyes open and where I live quite a few people especially pollies have 2-3 houses, you might want to open your eyes and do the same! I can only think you don’t live in a city but the country where possibly that doesn’t occur.

Like I said earlier, she said the "great majority of people" have 3 or 4 homes that they keep for themselves".
If you read what I wrote properly, you would see I said that a minority of people would do this. I have spent the last 24 years dealing in realestate, I have my eyes wide open
If the GREAT MAJORITY of people had say 3 houses each that they don't live, in, that would be say in excess of 12 million people multiplied by 3 empty houses each, some 36 million empty houses.
I think you need to open your eyes, read properly and brush up on the your maths.

 

[cjw1960]

Whilst the government has started allowing 545,000 immigrants, 2022-23 into Australia, where does it think these people will go with the current housing situation of people living in cars. Some still trying to continue working. 545,000 is way too many. Until the Government can provide housing for every Australian, the current numbers need to be whittled down to only those who have an address to live in once they get here.

Absolutely correct.

 

[MariaG]

We came full circle.
Hubby built our first home with his own 2 hands ... genius.
We moved after around 15 years and decided to go west of the city, built a rather large home with a view to on-selling. Was a very nice home in a new area with great neighbours, but too big for us.
Then we went backwards again into a 2 bed, run-down OMG home, fixed it up, and sold it to work toward our forever home.
Bought an old home back in the suburb where I grew up. It was not liveable, but was where we wanted to end up. Quite a narrow block - but long.
Pulled that old dinky home down and built our drop off the perch home. One level, 2 bedrooms and a spare for the little ones who visit (has a fold out lounge in it), wide halls, no garden (no mowing at all-pots everywhere), drive in garage, brick, hospital style showers (no bath tub), no laundry (washer in the walk in pantry-works out great), not the trendy open-plan everyone seems to like, very suitable for our age and hubby's medical condition. Best decision we ever made, but it was all about a long range plan that started with our first home.
We did all this over our 45 years together. Managed to do the buying/selling before the market went post Covid crazy. We own our home and are content to finish our days in this smaller version that is quite easy to maintain.
I don't know how folk can find the means to plan for this now. Home prices are crazy. There are a lot of senior living villages around, but many with hidden fees. I do have a friend who decided to stay put, rent out the home and live in a granny flat. Needed money to do that, but he is happy not to to the hard yakka. Other friends live in demountable villages, caravan parks, and a couple do the grey nomad thing while they can.
There is no perfect solution. Everyone has their own need and dream. I feel extremely fortunate that I can live the last section of my life content in the decisions we made all those years ago.

 

[Observer]

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

No one says you HAVE TO downsize. It is only a suggestion with some heading in that direction.

 

[Lynjw]

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’ve already downsized 3 times. I’m not moving again. I’m in the smallest house I’ve ever had if feel unhappy and claustrophobic in anything smaller. I love the quiet bushy area I’m in Now and not too far from family.

 

[toongabbie]

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'!

Yes, I agree to this whole heartedly. Don't wait for Seniors to "solve" the issues re the housing shortage, it's our politicians who should be doing more to solve this issue.

 

[Gsr]

I’m wondering how people downsizing is supposed to fix the housing crisis. There won’t be anymore rentals available even if we downsize as someone will buy our house and move into it. We will need to buy another house. Not many people who are renting now can afford to buy a big house like ours, the deposit would be in the hundred thousands, where are they going to get that money. If they had that money they would already have bought a house one would think. Very few people who are renting could afford a big house. So that leaves people who already have a house to upsize, then sell their smaller house. Can the government be sure a renter would buy the smaller house and free up a rental for someone else. If not then the housing crisis won’t change. Until the governments get going and build lots of housing to cater for low income earners who are currently priced out of the rental market nothing will change. How long does it take to get some demountable, pre fab houses up and available, the prisoners at our local gaol do a great job of modifying unused demountable buildings into houses in short time. They are not u beaut posh houses but they would certainly be better than being in a tent, a car, on a park bench or street, or under a bridge.

 

[Michelle Sc]

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'll leave my home kicking&screaming... ie when I won't be able to kick&scream... when I leave my house and eco garden that will not benefit a family with children:"developpers"will cut the trees, raze and flatten the rest of the garden and house. Said developpers will built units selling them to "investors" who will charge a mint to whoever needs a roof over their head. Well, they are just doing that next door to me. Btw in my 80's I still don't fancy living in a rabbit cage, enjoying all the strata problems, however I love the contacts with my nice neighbours who also keep an eye on my place when I go away (I reciprocate)

 

[mylittletibbies]

and where would those wanting to rent live? Thank heavens there are still investors willing to risk their hard earned money when they face such terrible laws giving renters more and more rights - not to mention those that do more damage than the bond can cover

You are so right, this happened to us twice, in the same home.
The first tenant completely trashed our beautiful federation home, which we had completely restored, she stole all the expensive drapes, and the landscaped gardens, new turf, etc were all dead. She knew all the loopholes and managed to stay in the house for 18 months, paying no rent, not turning up in court, etc. etc.
We spent a fortune renovating the house, and hired agents to rerent, making sure the tenants had excellent references.
We ended up having to redo the house again, as these excellent references were fake. So much for agents.
We sold the house, couldn't take any more. It was a bad market at the time and when I put in our tax return on that property, instead of having to pay capital gains tax on the property, we had a $137,000.00 capital loss.
These types of scenarios are behind the fact that there are less rentals these days, as the laws are more and more in favour of the tenant. Owning a rental property isn't worth the hassles in most cases.
Tenant insurance is hardly worth having, as like most insurance companies they find every loophole they can to get out of paying.

 

[Trish21]

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 live on my own in a 3 bedroom homeswest house I have lived here for 30 years they asked me 18 months ago to down size so I filled out the forms to down size and I am still waiting but it has give me time to get rid of a lot of stuff

 

[Littleboy8]

You are so right, this happened to us twice, in the same home.
The first tenant completely trashed our beautiful federation home, which we had completely restored, she stole all the expensive drapes, and the landscaped gardens, new turf, etc were all dead. She knew all the loopholes and managed to stay in the house for 18 months, paying no rent, not turning up in court, etc. etc.
We spent a fortune renovating the house, and hired agents to rerent, making sure the tenants had excellent references.
We ended up having to redo the house again, as these excellent references were fake. So much for agents.
We sold the house, couldn't take any more. It was a bad market at the time and when I put in our tax return on that property, instead of having to pay capital gains tax on the property, we had a $137,000.00 capital loss.
These types of scenarios are behind the fact that there are less rentals these days, as the laws are more and more in favour of the tenant. Owning a rental property isn't worth the hassles in most cases.
Tenant insurance is hardly worth having, as like most insurance companies they find every loophole they can to get out of paying.