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Downsizing

Discussion in 'Real Estate' started by Jacque, 12th Apr, 2007.

  1. Jacque

    Jacque Team InvestEd

    Joined:
    16th Jun, 2005
    Posts:
    1,885
    Location:
    Sydney
    I was recently interviewed for a Domain article about downsizing (see link to whole article here: http://www.domain.com.au/Public/Art...NationalIndex&headline=Upgrade your lifestyle

    and it got me thinking about the mentality of investors who are ready to downsize or enjoy their "twilight" years. Though I'm a little way away just yet (though some days I feel older than others!!) our plan has always been to buy a nice pad overlooking one of the northern beaches, when the kids have all left home. Trouble is, with more and more children staying home for many more years than our generation, we're likely to need more space. The trend is already evident, with downsizers requiring not 2bedders but minimum 3bd, not only for the adult offspring still living at home, but for the guests as well. Entertaining and storage space are also bigger issues, with many retirees still playing active hosts to numerous parties. My own parents are getting increasingly harder to pin down, due to the number of "events" they're constantly hosting since retiring a couple of years ago.

    As an investor, and particularly keen on value investing :D I'm not especially keen on retiring to a unit, particularly in a highrise block, due to the lower land content and the lack of control that accompanies such an investment. However, when land is at such a premium that the only affordable option becomes an apartment, then choices are somewhat limited. I would, however, always look for the boutique block that has some value adding aspect or feature in place that can be improved upon or is unique/sought after, for the particular area.

    Would be interested to hear from any downsizers here on the forum, to hear your experiences and how you've found the whole experience. Of the people I've helped to downsize, every one has been so different in their needs and very specific about what they were seeking, but quality has been high on the list. I guess as you get older, the fussiness levels increase :)