For retired Australians looking to settle down and enjoy a quieter, simpler lifestyle, it might be time to move out of the longtime family home. Living in a larger house and maintaining it can be unnecessarily complicated – and if there are just one or two individuals in the household, it often makes more sense to downsize and inhabit a smaller place.
For this reason, the NSW Government has long been discussing the possibility of using incentives for retirees to move out of their family homes and choose apartments instead. This move can lead to a positive ripple effect – not only can the elderly live more comfortably, but moving also frees up bigger homes for families that have been struggling to get into the housing market. Everyone wins – especially downsizers who choose to move into a luxury apartment.
Offering incentives can help free up properties
When retirees downsize into apartments that fit their lifestyles, it benefits everyone involved – but this seemingly can't happen unless the retirees have a little extra motivation to change their living situation. According to a 2015 report from National Seniors, it makes sense for the Australian Government to provide this motivation by using financial incentives such as stamp duty exemptions that will encourage them to buy property.
The NSW Government has long been discussing using incentives for retirees to move out of their family homes.
"Although many retirees are content with staying in their existing homes, a significant number want to move to something smaller but are worried about the financial implications and also the lack of affordable and appropriate alternatives in the current housing stock," said Michael O'Neill, chief executive of National Seniors.
Mr O'Neill noted that stamp duty, capital gains tax and pension issues are among the key issues that deter seniors from downsizing. This isn't to say that older people are a homogenous group and all will necessarily respond to the same motivators, but as a general rule, easing the financial burdens involved should help them move into the right-sized properties.
Downsizing helps everyone in the housing market
The beauty of all this is when seniors downsize their housing, a ripple effect occurs, freeing up better options for everyone else. A 2017 Real Estate Institute of New South Wales (REINSW) media release indicated that when retirees sell homes, there's a significant impact on the housing options available to families.
NSW Premier Gladys Berejiklian said recently that she's open to tax changes that will improve housing affordably; REINSW President John Cunningham responded by saying that incentivising seniors to move would be a huge step.
"Premier Berejiklian has stated that the key to housing affordability is supply," Mr Cunningham said. "However, supply is not just about new homes. The key to housing supply is unlocking existing properties held by retirees."
Mr Cunningham noted that often, a senior moving into an apartment can set off a chain reaction – just one transaction can lead to 10 future sales of homes. With an increase in the supply of homes available for sale, prices should soon fall, which will be a relief for prospective homeowners across Australia.
Luxury apartments balance comfort with good value
The question, then, is where seniors can move such that they can still live comfortably and get a good value on the new property they're buying. This is more easily said than done, as many seniors have been living in their current homes for a long time and have grown emotionally attached to them.
Retirees' decisions to stay home or downsize are rarely made for financial reasons.
According to The Conversation, retirees' decisions to stay home or downsize are rarely made for financial reasons. Instead, they're usually more concerned about where they can feel comfortable and happy, and two-thirds of older Australians have expressed a desire to "age in place" rather than sell the family home.
This mindset is a difficult one to overcome, but a good solution is to present retiring Australians with housing options where they can live just as comfortably as before, and at a good price. Often, the best way to do this is with luxury apartments. Projects like Waterfall by Crown Group offer the perfect balance of luxury and tranquility than appeals to many downsizers in Sydney.
Crown Group can help with your property needs
If you or anyone you know is considering making the move from a home to a luxury apartment, it helps to have real estate experts on your side who can help survey the market and find the right property in the right location. At Crown Group, we've got a proven track record of doing just that. We've been working for over two decades to help clients make soundly planned investments.
Contact us today to learn more about the services we can provide and the wide range of properties we have to offer.