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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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Karen
Karen from NSW commented:

I lived in the city and as a single parent with no help decided to move to the country.... Now you get thousands of dollars to do that. I never got First Home Buyers, I never got Baby Bonuses . I'm now a pensioner, the kids have left and I have downsized. I decided to build a tiny little house that would last me out and not need anything doing to it for many years .and I find that I'm so much worse off for the excercise... I have NO savings left and live from pension to pension.. So much for doing the right thing... Ha 

margaret
margaret from NSW replied to Karen:

Karen. If you own your home outright and are struggling to live on the pension you might benefit from asking someone you consider 'good with money' to look at your budget and your lifestyle choices some of which may no longer be good choices for your current lifestyle. Because we are creatures of habit we often do what we have always done even when that is no longer required. For example my downstairs neighbour and I have identical flats however have vastly different electricity bills. Hers is $900 plus per year more than mine This is because she watches TV in a room 5metres in length with double doors leading to a similar sized room. This requires one and sometimes two large heaters running up to 20 hours a day. I watch mine in my small bedroom were I can do some money earning craft without A- messing up my flat B-needing more than a small heater for far fewer hours. Even if one considers a TV as the perfect adornment for ones sitting room they are so cheap now that it would be well worth my neighbour buying a second one for the bedroom. Now Karen whilst this may not apply to you, it is an example of how one clings to habits from a different time/lifestyle and sometimes an outsider can see this more clearly .Some of us became so accustomed to being 'time poor' when we were earning a higher income that we purchased things we could make, and now with 24 hours each and every day we are still stocking up on prepared and frozen foods,throwing out instead of mending and other habits required during more money less time, periods of our lives. Again, may not apply to you Karen, however there is often ways of saving money without feeling skimped and going without everyday items. Good Luck 

Peter
Peter from QLD commented:

Over the last 20,000 years or so, the younger generation respected the older generation and looked after them. Over the last 20,000 years or so, the younger generation worked hard to earn their position in society. I don't understand why suddenly this generation is 'owed' homes, and want to throw the older generation out of their homes. I do not understand where the emotional blackmail comes from. My thoughts here are: -understand what you ask for- what will your thoughts be when you are the older person? -every action has a consequence- have you thought through all the cosequences before greed took over rational thinking? 

Don
Don from NSW commented:

the cost to downsize makes it very restricted. Agents commission on sale & purchase plus stamp duty would cost me $50,000 

lis
lis from QLD commented:

What is going broke? A different definition for different people. Robert I agree multigenerational families are not trying to get work and look after themselves. They believe it is their right for the govt (us the tax payer) to provide for them they are a totally different issue. Aged pensioners who have paid their taxes should be able to receive a pension. Not all earnt high wages whilst working for 40+ years and many thought paying off their home the best choice. Their taxes paid for all government spending and the govt set aside a certain amount for pensions never dreaming so much extra would be needed for those who choose not to work (as opposed to those looking for work after having to leave the work force for some reason ). High income earners should not get a rebate on childcare as it is their choice for their lifestyle and having children. As for retired politicans being paid all the perks. If they are still working freelance no pension whatsoever and if not working to be treated the same as everyone else. Same super deal same aged/disability pension and if under pension age should find a job and use newstart as ordinary citizen with same access to pension/super as the rest of us. Also those who have children so they don't have to go to work. I know of one married mother ( now separated) with 6 children who has said she wants to have another child before she turns 40 so doesn't have to go to work and we are paying for her to stay at home and he is paying maintenance Too many are taking advantage of govt payments and these are not the baby boomers or older. The multigenerational families on the dole will never have anything to give back to the govt from their estate.so it falls back on the tax payer to prop everything up as the rich have super accountants to ensure they pay as little tax as possible and get as many perks as they can. Young ones should earn and save for their lifestyle which they appreciate more than if given extra by the govt to achieve it. 

Nada
Nada from NSW commented:

I'm in my late 50s, live in a 3 story 3bedroom home with a back yard in the Eastern Suburbs. I have offered my daughter and future son-in-law to share the house with me and if it doesn't work out well then I plan to either let them live in the house and they can borrow money to buy me a small unit nearby so we are close especially when the grandkids come so I can help out. Sorry but I see a lot of single older people living in large 4 bedroom homes in the East and can't help but feel it is selfish not to want to help the younger generation. Unfortunately we seem stuck in an era where it's "all about me" where the individual just lives for themselves and has no empathy for others. 

Allan
Allan from QLD replied to Nada:

Nada. Good on the single older people living in large four bedroom houses. No doubt they worked hard and paid of the mortgage to do so. I agree we live in an era where it's all about me. And that is the issue when it comes to the current generation. If they simply accept the fact, that to obtain what they want, then they will have to put in the hard yards to do so. That's what I had to do. As soon as I left school I was told to get a job and I have worked ever since. And now I'm going to enjoy what I have laboured for. I do have empathy for battlers that make the effort to help themselves with little or no assistance. But, no empathy towards those that want everything handed to them on a plate with no effort to help themselves. 

Jennifer
Jennifer from NSW commented:

Over 50 is not old and I feel that you can stay in your house as long as you wish and besides some would like to move but lets face it the government doesn't allow any help with the stamp duty for downsizers so I guess more older people would move if they didn't have to pay stamp duty. 

Rosalie
Rosalie from NSW commented:

The Government needs to leave the retired people alone. They have paid their taxes . I am also sick of this Government helping refugees and giving them handouts and who have paid nothing and our pensioners get crap. Also I cannot stand knowing our men fought for nothing and those hypocrites have the hide to remember our men on the 11th november . Just keep bringing people here that dont like us ,want to harm us . We have uneducated people running our country ,the country I once loved but dont love it anymore I actually hate it I dont feel safe in my own country . Our police are wimps they need more powers the crooks are laughing at them. Please someone get a backbone . There is no room to bring more refugees ,we have aussies living on the streets ,but i have never seen a moslem , sudan, tongans and all the rest on the streets . They all seem to have nice houses and cars but still pick the wages up from centerlink every week free medical . It has to stop . Also stop giving our hard earned money to the UN and other countries you dumb idiots . 

margaret
margaret from NSW replied to Rosalie:

So right when you suggest money used for refugee so we can impress the rest of the world could be well spent on housing our own. Families shuffled from one two motel rooms every couple of weeks can also produce socially disadvantaged children that cost enormous amounts of the tax payers money over their lifetime. Last week we were told of a man hospitalized after an extended period living under a cliff in Black heath. There are thousands like him throughout Australia under bridges, in parks in doorways, plus the lucky ones who have an old car to live in. There seems to be a lack of interest from 'bleeding heart' world organizations, lawyers wanting to fight for their rights to have lavatories nearer than 100 metres...Oh sorry most of these people often do not have access to lavatories or showers, or, clean clothes,or food, or cooking facilities, or regular medical attention. No;one cares. This week The Telegraph told us we the tax payer would fork out about $7000 million in total on 14,000 refugees, who will have access to all the above. DISGUSTING . 

Mick and Ester
Mick and Ester from QLD commented:

No way, where is it all going to stop? What's next? Are they going to tell us the size of the campervan or caravan that we may be allowed to own because we will no longer be permitted to own permanent property? We have all worked hard for what we have got. Wait for the Centrelink asset disposal changes!! 

Victor
Victor from NSW commented:

Vic from Sydney my mother in law who lived in Bondi cried when my wife told her that we had bought a block of land in the western suburbs of Sydney the only area which was affordable on a combined bring home pay of $500 per MONTH .It was the first time my wife had ever had a backyard .So my suggestion to the pampered generation if you want open space is go west like we did. 

Someone
Someone from NSW commented:

No. It took us until our fifties to be able to afford a home. This provides security for our children and oursleves. We have two children still at home and we have a young family of four living with us. So we are providing a home for another family who would otherwise not have a home. 

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