Over-50s turning to downsizing

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People choose to move for a variety of reasons. It might be that they’ve secured a new job and need to relocate closer to it, or simply want a change of scenery. For over-50s across the country, the Australian Housing and Urban Research Institute (AHURI) has found that downsizing is high on the agenda.

A total of 43 per cent of people who have moved since turning 50 have shifted to a property with fewer bedrooms, with retirement villages and units proving especially popular. AHURI also asked what their main motivations were for relocating, with many of them saying they wanted a lifestyle change, or were simply unable to maintain a large property. Other factors included children leaving home and financial stability.

However, respondents were keen to point out that various obstacles have been faced in their willingness to relocate. These include the availability of property in their chosen area, as well as the psychological barriers preventing them from moving.

McCrindle predicted last year that more Australians would show an interest in downsizing, perhaps as they looked for assistance from mortgage brokers to refinance their loans, or to have a more manageable lifestyle.

Social Researcher Mark McCrindle said retirees in particular are keen to make the shift to a smaller property and will do so much sooner than previous generations.

“Baby Boomers in their 60s have their main net worth tied up in their home, and they’re happy to sell to get more appropriate accommodation for themselves, so as the market rolls on, there’ll be a lot more selling and downsizing,” he commented.

AHURI found that downsizers look to a range of people for advice on where to move to, such as real estate agents and even friends and family. Financial experts were also found to have played a role in the decision making process.

You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!

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