News

NewsTo downsize, or not to downsize?
To downsize, or not to downsize?

To downsize, or not to downsize?

Are those of us aged over 50 really hogging all the detached houses in suburbs close to the amenities of the CBD, at the direct expense of younger families who can’t find homes to  buy?

There’s been a fierce blame game all week after the Australian Population Research Institute claimed "empty nesters" are forcing kids to grow up without backyards by refusing to downsize and move out.

As an issue it has everything; intergenerational warfare (with baby boomers somehow at fault), the inflated and unaffordable property market, and a big slab of presumed guilt for not moving on.

Sure, the census shows up to 60% of those desirable freestanding homes in Sydney’s and Melbourne’s inner and middle suburbs are occupied by those aged over 50. And why not?

 They have grown older there and are part of the community. It’s close to health facilities and as Australian Seniors’ Michael O’Neill rightly pointed out, these were often much more humble areas in the past.

In addition the recent changes to pension eligibility outlined in the last Budget mean that if you downsize and liberate the capital from the family home, you stand to lose some or all of the pension.

Should over-50s downsize from the family home so younger families can have more space, as media reports suggested this week?

Click here to vote

The data suggests almost all of those lucky enough to be living in such places will stay there until they are at least 75 - and even then, they will usually choose to buy another freestanding home.

The boffins behind the report say there’s a shortfall of tens of thousands of detached houses and it will get worse over time.

 So what’s to be done, and who ends up paying given that the planners or the market seem to have got it so wrong?

Inevitably there have been controversial suggestions that the family home should be included in the pension’s assets test to encourage downsizing.

Another bright idea, which arguably would hit also hit older Australians harder, would be to replace the stamp duty on sales with an annual property tax levied for just living in your home.

None of the pundits seem to mention how many grandparents in some of these homes and gardens provide childcare for 837,000 kids a week at some cost to themselves (see our October 1 blog on this issue).

Inevitably there’s no easy answer but the first response should not be to sheet home the blame and the cost for so-called reforms to those who have done nothing else but buy and love their homes.

As you’ll see from some member comments below, you seem to feel much the same. Also do answer our snap poll on the issue - ">Should over-50s downsize from the family home so younger families can have more space, as media reports suggested this week?"

Click here to vote

Originally posted on .

Join the conversation

FiftyUp Club
To downsize, or not to downsize?

Share your views with other members. 

Want to leave a comment? or .
Read our moderation policy here.
Werner
Werner from NSW commented:

We may be over 50 or much older, perhaps a little feeble but not so stupid that we need others to decide how to manage our family life and if or when to downsize. Let those clever people recommending such ideas vacate their foreshore houses and perhaps suggest where to find the funds to re-establish elsewhere, who is likely to have funds to purchase new lodgings, many would love to move to a smaller home. It is the Governments responsibility to create an environment to cater for growth and development, while we have Politicians either financially irresponsible or obstructionist, there will never be a better future for young families. 

maria
maria from NSW commented:

It's a personal decision that everyone needs to make for themselves. We downsized in our mid fifties to free ourselves from the maintenance of a large home and garden we no longer needed. We know many others who made the same decision just as we know many people who prefer to continue living in their family home. Live and let live without interference from government! 

Thomas
Thomas from QLD commented:

I dont think people should have to down size because the media and so on are saying the older people are holding on to room for young or just starting familys these people have probably spent there lifetime were they are I myself know were I grew up my parents stayed in the house my father built all those years ago and when they passed myself and brother and sister put the house on the market after they were gone a younger family have it now that is how I feel it should be . 

Eva
Eva from NSW commented:

I worked hard all my life to make a family home(my first real home as I came from War torn Prussia) I couln't stand the thought of downsizing, as my children were all raised here,my husband did lots of landscaping when he was alive.Lots of memories,my home for 53 years.I deserve my space and comforts here.MY right to stay surely. 

colin
colin from NSW commented:

I am over 65 I work in excess of 80 hours per week, I love my five bedroom ,study family room, lounge room and rumpus room home on five acres I lived here since 1997 . I built the home I put a lot of blood sweat and tears in this home before and after I divorced. My children have grown up and moved out I am an empty nester. Now a couple of controversial academics come out with some stupid statement that I should move out and let the younger generation enjoy what I worked for well you know what they can do with their dumb job justification statement STICK IT UP YOUR JUMPER! If anyone is to blame is the Government and local councils for pushing high rise developments and postage stamp size building blocks and in both these there is insufficient infrastructure foe amenities for children to play and be outdoors. The old days when parks and reserves are gone now it is how to make more money out of the same size land and the appropriate body does not spend more on roars water and other services. There is no way we should make way for the younger generation at our expense.Even with the hours I work I still manage to maintain my property on my own one day when I feel I am unable to manage I will consider downsizing. 

Carol
Carol from NSW commented:

Carol from NSW Our forefathers who fought for our rights to become a better place for the then and future generations of this country would role over in their graves to see the disgrace this Australia has become. It just seems to me that from Polititions to the younger generations,the Over 50s are not being shown any respect that is their due. Every day you see in the media the next plan someone comes up with to kick us in the guts,what do the want us to do just role over and die.Over 50s is vastly becoming of little consequence,and shortly we will be entitled to nothing . 

Julius
Julius from NSW commented:

Julius from NSW Reading comments of other “over fifty’s”, there is much the same answer – do not downsize for any reason, government or media may argue or comment. It is your home, your life and circumstances permitting, live in your home as long as possible. You have your established place, transport, medical facility, neighbours and that makes feeling of safe living. All of us worked hard to achieve our goals, with many sacrifices on the way. Present generation is pursuing different values in their lives, where motto – I want it all, I want it now - is dominating their actions. We should not condemn them, rather show them how we did it, of cause it took us a little longer then they are prepared to take. My wife and I had an opportunity to built our home with the outlook that we will remain in the house for life and later one of the children will take over, living in and looking after the house (and us as well). I certainly wouldn’t feel comfortable if developers would take over and demolish the place in a pursuit of their profits. 

Nigel
Nigel from NSW commented:

This is just another smokescreen, designed to gain approval from the greedy "I want it now and I shouldn't have to work for it' generation. I have 2 houses abd you greedy little arseholes are not going to get your hands on what I worked bloody hard for. 

Elizabeth
Elizabeth from QLD commented:

Honour thy mother and thy father so that their lives may be long in the land that the Lord giveth thee. 

Paul
Paul from WA commented:

This generation want every thing at once, a house two cars and a house full of all the modern white goods and Foxtel. They are up to there eyes in debt and can only blame them selves! 

Comment Guidelines