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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 .

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Jenny
Jenny from QLD commented:

What a load of garbage! I will downsize when I am good and ready to. The older generation is not to blame for the cost of housing. Tell our politicians to stop allowing rich overseas investors to buy up our homes. These are the people who have pushed up the price of inner city housing.....not the older generation who have raised their families in these homes. As stated, a lot of the 'affluent' inner city suburbs were once just mainstream suburbs, some of which where not very nice to live in at the time. 

carol
carol from ACT commented:

Hands off my house ! I own it I paid for it. I did not get baby bonuses, paid maternity leave ,parental leave, superannuation, for most of my working life. We also provide child care 5 days a week for two grandchildren not only freeing up two places in childcare centres, but also saving the govt. the cost of childcare rebates. This also frees up both parents to work and pay taxes and provide for their own retirement in time. Looking at foreign investment in Australian homes and taking appropriate action would alleviate the situation .All political parties would do well to remember that we vote! 

Helen
Helen from NSW commented:

They will have to remove us with a front end loader, we have no intention of moving. We had our first home built at Seven Hills in 1971 and paid 18% interest on our loan, we ran our own business and put our three children through private schools. In 2000 we built another house in the Blacktown area as we needed a house without steps and large enough for my husband to be able get around in a wheelchair, I think it is a bit rich for THEY whoever THEY are to expect older people to vacate their homes because young people "need" them because they want to be close to everything. This is taking the Age of Entitlement to the extreme..........it is disgraceful! 

Margaret
Margaret from VIC commented:

I live on 16 acres 28km north west of Melbourne. 80% of residents in my neighborhood are over 60. Most of us would love to be able to move onto 1 acre in the same neighborhood or subdivide our land into 1 or 2 acre lots. The government won't let us subdivide or have another area close by with 1 acre lots. So we stay here. Most of us have kids in there 20s or 30s living on our properties or visiting and staying for weeks at a time. We need the larger homes and I could never live in a flat. I grow my own vegetables and fruit. 

Valerie
Valerie from NSW commented:

Don't downsize if you don't have to. I had to downsize at age 62 for health reasons. It cost a great deal to move, I've lost a huge chunk of pension, which I worked hard for, raised two children, paid my taxes, paid off my home, and, I maintain expensive private health insurance. I never had any Government assistance for anything, ever. I'd love to go back to work. There is definitely age discrimination by employers, 3 years of applying for any job, full or part time, has proved fruitless and demoralising. Although happy, I have a distance disconnect to my former friends, medical appointments, transport and social groups. I'm adjusting, it is challenging, and I'm not complaining, however, no one should be penalised after a life of hard work and social responsibility. 

David
David from NSW commented:

Alan from QLD When I came Sydney in 1973 houses were so cheap to purchase I brought a new 4 bedroom house for $27,500 the mortgage was $138.00 a month on a 25 year plan , but I paid it off in 5 years , most Australians would not pay their mortgages off but go the whole 25 years , good for the banks , not good for the person , then I went out and brought 3 more houses , my wife did not work , and I only had a regular job , with regular pay , but I did have a Company car . I had two children , but watched what I was spending , we had holidays , went out and about on weekends , I paid all our bills on time . People in the road where I lived , some had better jobs than me , but they where always in the poor house , it's all down to money management , most people waste most of the money they earn , because they were never shown how to manage it , they call it living , at the end of the day they have to pay the price . 

Allan
Allan from QLD replied to David:

David. Like you I have managed my money, and because of this I own my home on a reasonable sized block of land. Would I down size? Well I have considered doing so. But, like most members have stated the cost of doing so is daunting. Some retirement villages are asking high prices for dwellings in these villages. Maybe if the federal or state governments assisted older citizens to down size by removing or lowering the current costs of doing so, then I might consider moving. What I'm saying is, if the so called greedy help the so called needy, then the greedy will become the needy. Like most, if not all, baby boomers, I worked hard , paid my taxes, paid off my mortgage. And now I am going to enjoy my old age in my own home, at least for a few more years. All I ask is, those who are doing so, stop penalizing the mature aged citizens of this country who have worked hard, fought for this country and made this country great alone. And maybe consider a helping hand, this is what Aussies do. 

Pauline
Pauline from NSW commented:

As we are 69 and 72 we moved into a over 55's Village 5 years ago and we are very happy here and have not regretted our move .we had a 4 bedroom home and pool on a large block .so easy living here and you always have company and plenty of things to do Pauline 

Someone
Someone from NSW commented:

This is just ridiculous! The only people who can afford to purchase detached houses in Sydney are people on high incomes, buyers phoning in from China and developers who want to get their greedy paws on your plot of land and rip down your family home. I resent the opinions of this armchair think tank. Was he alive and paying off a mortgage when interest rates were 17%? Buying a family home requires sacrifice and this asset should not be stolen from the older generation. Maybe it's because these champagne sipping socialists don't want us to leave anything of worth to the next generation! Cheers to all you hard working people out there who bothered to provide a home for your family. Yvonne N.S.W. 

frederick
frederick from NSW commented:

leave us alone! I wonder how many pollies would like to downsize? we've lived here 44 years and like the shops, rail, bus, doctor and hospital nearby. I like my space, shed and back yard. Flick off!. the young ones can travel and overseas buyers are not pushing us out! pollies can get on their bike!! 

Anthony
Anthony from NSW commented:

Yes, why should we be guilty of hanging onto our family home. We paid the mortgage for 30 years and now that we can relax and enjoy the other side of life's, freedom of choice, without having to put the children first. THh government should be providing more services to the elderly to keep us in our homes. Many, if not all of us, somewhere along the line, babysit the grandkids. We live in a 3 bedroom villa, here in beautiful Forster. The house is used as a holiday destination for the children and grandkids at least 6 times per year. The 'big' house allows us to see the grandkids more often as we don't travel too well now at our age. One son is looking to buy a few acre block up here for him and his wife to retire on, he is only 49. If you want to live in the city and inner suburbs, start a saving plan now, you cannot expect the elderly to move out so you can satisfy your own selfish desires. 

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