When brokering home loans at Smartline Rockingham, we learn a lot about our customers, the area and market trends. Traditionally, home buyers start out as small families and “buy up” to larger homes as their families grow and they become more successful in their careers. But the baby boomer generation is changing the traditional pattern and starting their own: downsizing.
The baby boomer generation is the largest generation in history and they are reaching the age where they want to scale down and relax. Large homes take a lot of maintenance. They cost time, money and effort. When the children have moved on to start their own families, the “empty nest” can become cumbersome.
The answer for many is downsizing.
What is Downsizing?
Downsizing means moving into smaller homes. Sometimes these are freestanding homes and sometimes they are units. According to the Australian Housing and Urban Research Institute (AHURI), 43% of Australians over 50 who move do so by moving into a home with fewer bedrooms.
This can often result in a nice windfall for those whose homes are paid off when they move into a smaller home that costs less money.
Can Downsizing Increase Affordability?
Downsizing not only makes living more affordable for the older couple, it also puts more larger homes on the market. This can keep prices from rising as fast as they otherwise might and help young families purchase homes large enough for their needs.
Malcolm Gunning, President of the Real Estate Institute of New South Wales, feels there should be incentives for older Australians who want to move into housing that is more appropriate for their needs. This could create more downsizing and make even more housing available for younger families.
We Offer Home Loans for Any Situation
Whether you are a downsizer or a first home buyer, it pays to have a great mortgage broker on your side. We have access to the credit products of 28 different lenders. No matter what your situation, we can find the right lender for you.
For further info, call us today: (08) 9527 1800.