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

To downsize, or not to downsize?

Tags: FiftyUp Club
Last updated by Chris Zinn on

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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Gabrielle
Gabrielle from NSW commented:

I think there are more important topics to discuss with good ideas and solutions to be implemented. This topic is not even worth mentioning, to downsize or not to downsize is no body's business except the owner of the house, it's a personal & private decision not a public one. So mind your own business!! 

Mark
Mark from NSW commented:

I would love to downsize. But as Coral below says: where to? Certainly not one of God's waiting room aged care facilities. Or my daughter's garage. So do I go to auctions? Well not unless I am prepared to pay multiples of the true price given the prevalence of Chinese faces with bags of money and no English. And why would I sell if it will almost inevitably lead to yet another foreigner (rather than a young Australian family) buying another chuck of Australia? 

Gary
Gary from TAS commented:

I am now pusghing 73 and very fit. I purchased my home in central Launceston and I have 3 supermarkets within 2 city blocks, a chemist 1/2 a block, 3 hotels within 2 blocks, 2 computer stores within 1 block, a deli less than 1 block, Doctors surgery within 1 block, 1 block to my part time job and 2 1/2 blocks to Launceston General hospital. When I need a walker it will allow me to stay here. My house is too large but the location is just fine, I guess they will remove me in a cardboard box. Regards Gary. 

Brian
Brian from NSW commented:

We were once in a a similar position. Little money beyond week to week living cash. We both had middle of the road jobs .We both worked, but the children always had a parent at home to cover working days ,one parent at work other at home Times have changed but that is not our fault........why should we feel guilty.....in our period we had problems but solved them as they arose. 

Stephen
Stephen from QLD commented:

Asset rich and cash poor my best strategy looks like being to up size not down size before the pension changes come in January 2017,with interest rates at under 3% I'm better off putting what I do have into a more expensive property and claiming a full pension,which would be roughly $5000 more than my part pension and interest combined after 1st January 2017. I was happy the way it was being semi self funded but they leave me little choice. 

Coral
Coral from NSW commented:

So where am I going to downsize to. Villas are the price of a house now. They are not pet friendly. They do not have the extras that I worked hard for to get, like air con, dishwasher etc. The younger generation need to give up some of their expensive living standards and use this money to get their homes, like we did 

Grace
Grace from NSW commented:

The younger generation seem to think that we the seniors still owe them after doing without all our lives - no dining out, holidays, latest mod-cons or new fashion clothes each year - we wore our clothes till thread-bare, now the younger ones pay high prices for jeans sold with great big holes manufactured in them (we would not have even given such to Saint Vinnies). We paid taxes for them to be educated, baby bonuses, subsidised child care etc. etc. Not taking into account First Home Buyers Grants, etc. etc. I agree with Judith from NSW and France from VIC, and Allan from Qld - register the new political party, we need to flex our collective muscles, and bring meaning back into 'respect your elders'. 

Allan
Allan from QLD commented:

My last comment. Maybe the FiftyUpClub should have a survey about forming another political party. For lack of a better name I will it the "Baby Boomers Party ". Lets face it, the hard earned knowledge, experience and commonsense of over fifties would be a formidable force. But, in the unlikely event this occurred, the party would need to be prepared to represent all generations, not just over fifties. Just a thought. 

Lyn
Lyn from NSW replied to Allan:

Allan of Qld. Was thinking same, hate to be a damp squib to wonder how it would be funded when we are the ones trying to hang on to what little we have to see us out. We certainly have the time, knowledge and experience but as with all things in life, funds are required for good ideas although it's possible a party HQ could be set up in one of those too many bedrooms we have, so that would negate rent ! 

Allan
Allan from QLD replied to Lyn:

Lyn from NSW. Believe it or not, forming a political party is relatively cheap to do. It requires $500 to register the party. But the initial requirements must be adhered to first, such as forming a committee, discussing the aims of the party at an inaugural first meeting and, most important, raising a draft constitution. Then it requires 500 plus, registered on the electoral roll, members to join the party. A fee to join to be determined. Once this is done, the registration forms and payment are sent to the AEC for further action. Plus it would help if there are members available with experience in drafting contitutions and maintaining a register of member etc etc. Once the party is established then further work would be required, such as finding candidates to run for election in various electoral divisions. Fund raising, publicity and posters and so on. If there are mature aged people who would like a challenge and be involved in something different and be willing to contribute a bit of time and effort, knowledge and experience then one can only guess at what could happen. I will admit that I once stood as a candidate in a federal election about 18 years in the past, so I have a little experience of what occurs. And even though I did not win, it was still an enlightening experience and I was pleased that I was involved. Google, how to form a political party in Australia. 

Lyn
Lyn from NSW replied to Allan:

Allan of Qld. Looked at what you suggested. Very interesting to see what the Australian Motoring Enthusiasts Party has done in such a short time with just 1 Senator. Their website is enlightening. 

margaret
margaret from NSW replied to Allan:

So here we go. Let's ditch this idea which requires some effort and involvement and go back to what most of us 50up club members do best. Whinge, whine, tell each other how hard we all worked for so many years and ask to be given more because we are so worthy.Now I'm going off to sit on my bum and earn another $6 and be thankful for the little I have, and my ability to earn an extra small amount.. 

margaret
margaret from NSW replied to Allan:

So here we go. Let's ditch this idea which requires some effort and involvement and go back to what most of us 50up club members do best. Whinge, whine, tell each other how hard we all worked for so many years and ask to be given more because we are so worthy.Now I'm going off to sit on my bum and earn another $6 and be thankful for the little I have, and my ability to earn an extra small amount.. 

Judith
Judith from NSW commented:

To save up enough for a deposit on a house in the 50's and 60' wasn't easy and quite often people stayed in those houses forever or a long time anyway. They were happy with those houses looked after them and grew to love them. Sometimes these houses were passed down from generation to generation. Now if an older style house is sold it is are often extended or pulled down to make way for a much grander house which take up all the block so there is still no back yard to play in anyway. And what about the developers who buy up houses to build as many small apartments on the sight as possible no backyards there ah. 

France
France from VIC commented:

The Govt see over fifties and pensioners as easy targets who do not complain and cop everything dished their way. So they will try to get as much as possible from us unless we get together and flex our power. Whingeing will not help. There are over three millions of us, we should be able to make politicians quiver in their boots by our numbers, come on people.let's do something, Let's get organised. what are the organisations for seniors doing? May be they are getting paid from the Govt too. 

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