Over recent months the Urban Living Team have observed an obvious trend towards downsizing. In fact, a study conducted in 2020 showed that over 70 per cent of people over the age of 50 are either currently considering downsizing or would like to in the future.
Whether making retirement plans, following children and grandchildren to the Lower North Shore or simply opting for a low maintenance alternative, lifestyle is the clear reason behind the trend.
Empty Nesters and retirees are among the bigger percentage of those looking for a smaller home (usually an apartment), but many others are also in need of a change that better suits their current living arrangements or lifestyle goals. With a huge draw card of downsizing being less maintenance there is also the finite financial aspect to it as well. As the cost of living continues to increase, these clients, particularly those heading into retirement who don’t need all that space, can pull out a significant amount of equity and inject it into their future.
For some, their children have grown and left the family home, and now it’s time to downsize to a three-bedroom and for others they’ve already sold the family home, but now they’re looking to downsize further and purchase a holiday home or travel abroad for extended periods. For most people they want to stay in and around where they currently are, but if they moved away for space – the trend is to return to the Lower North Shore for its lifestyle. If you find yourself with empty rooms, a surplus of space or more maintenance than you want, maybe it’s time to think about downsizing.
What people are looking for when downsizing:
–Low strata fees. They don’t want extra costs, so minimal common areas and no pool or gym
–Boutique apartment blocks with four or five neighbours across minimal floors
–Close to amenities including shops, transport and restaurants
–A small outdoor area with minimal maintenance required
–Great views or outlook if possible
–A location close to their family
–A ground floor apartment is often desired
Some of the possible benefits to downsizing:
–Free up cash to help you live more comfortably and do the things you love (e.g. travel)
–Boost your superannuation with the profit from your property sale. Since January 1 the Australian Government now allows anyone over the age of 55 to top-up their super with up to $300,000 from the proceeds of the sale of their home. A couple can make a total contribution of up to $600,000.
–Reduce your mortgage and/or purchase a holiday home to enjoy at your leisure
–Tap into the equity locked in your home and liquidate this asset
–Provide less maintenance and less cost. Easier and lower maintenance allows increased independence and a more relaxed lifestyle
–Less hassle. An apartment (rather than a house) allows you to lock and leave. If you decide you want to go away for a month, you don’t have to worry about organizing the gardener’s and doing house security
–Be closer to your children and /or grandchildren
–Location and lifestyle changes including access to public transport, shops and parks
The decision to downsize your home can be closely linked to family changes, retirement plans, or a shift in lifestyle. Whatever the scenario, getting the best result in the sale of your home will help set you up for your upgraded lifestyle.
Need a lifestyle change? Consider downsizing.
If you’re considering downsizing we have properties that might suit you. Please get in touch with either of us:
Chris Lapham
Senior Sales Advisor – Strata Specialist
+61 423 222 107
chris.lapham@raywhite.com
Jake Wilson
Senior Sales Advisor – Strata Specialist
+61 430 564 683
jake.wilson@raywhite.com
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