Downsizing – How to do it well!
We were recently approached by a real estate publication for commentary on older Victorians downsizing from their larger family homes. Here are some top questions we answered:
- What Melbourne suburbs do you think are currently popular for downsizers and why?
A lot of downsizers want to stay in the area in which they currently live, so sell and rebuy locally. However, some prefer a sea change or a tree change. Many move to be closer to children as they age. So, it’s less the suburb and more the motivation that drives a lot of down sizers. We have been buying in Balwyn, Blackburn, Mitcham, Kew, East Kew, Ivanhoe, Eaglemont and also Bayside in areas like Hampton for our down sizers.
- Are there any other Melbourne suburbs you predict will become downsizer hotspots in future? Why?
I think that Brunswick and Coburg will become downsize destination suburbs. The young buyers are gentrifying these areas at the moment with so much
- What types of housing do downsizers generally look for? (i.e. three-bedroom apartment with no stairs, security entrance, etc)
Properties that are single level with not many steps are in HOT demand. Buyers also love direct internal access from a garage into the living area so that they are secure and don’t have to carry shopping far in the rain. High quality apartments in developments with lift access to the floor you live on as well as to the basement carparking are another “in demand” type of property.
- Do you think there should be more incentives in place for people to downsize?
Yes I do. Often down sizers have to pay for a new, smaller property, almost as much as what they sell the family home for. When they buy, they need to pay stamp duty at time of life when they may not be receiving once regular pay cheques. I think a significant stamp duty cut for the older population who can demonstrate they are down-sizing, would lead to more large family homes that are occupied by only 1 or 2 occupants to sold and available for young families.
- Do you have any tips for downsizers on how to find the right place for them?
Expect there will be competition for properties that “future proof” your accommodation needs. Single level homes are in short supply as developers are tending to build two and three storey townhouses now. Write a list of must haves and would likes that will suit you now and in 10 years. Think about things that you may face in future such as limited mobility, or a hip replacement. Is there a suitable bathroom? Is there a downstairs bedroom. If you are buying a property with an Owners Corporation, how much are the fees and what do you get for them? Will you be able to afford them on an ongoing basis as a retiree.
A recent article in the Leader explores how buyers are thinking smaller and why two bedroom house prices are growing faster than larger family properties.
Consider meeting with a reputable, REBAA accredited Buyers Agent in your state to see if they can help you buy quicker and better and avoid costly mistakes. Of course, if you are in Melbourne, Buyer Solutions is here to help.
For independent advice on buying or selling real estate, contact Janet Spencer at Buyer Solutions +61 3 9816 8555 or email jspencer@buyersolutions.com.au
+61 39816 8555