Recent articles on housing affordability
focus on first time home buyers being priced out of the real estate market. What gets a lot less press, but may be even
more important, is the affect this is having on the 50+ Australian population.
There is a pervasive assumption that people
over 50 are well-off, and own their own home outright. Thus, they can look
forward to a financially comfortable retirement, with many choices for senior
housing.
In reality, the situation is much different
for most over-50’s. Divorce, periods of unemployment, and/or unexpected blows
to life savings, such as during the recent financial crisis, have left many
seniors in precarious financial positions. They have difficult choices ahead in
which even downsizing options are limited.
In a study entitled Downsizing Amongst Older Australians commissioned by the Australian
Housing and Urban Research Institute (AHURI), findings revealed that housing
availability and affordability are the two key barriers to downsizing for older
people.
With 25 per cent of Australia’s population
now aged 55 or over, and that percentage rising fast, Governments have a hard
task ahead to provide for the affordable housing needs of an aging population
who do not have the financial means to support themselves in their current lifestyle.
And the results could be devastating for
our oldest citizens.
In a
recent article published by DPS Guide to Aged Care, Mary Wood, Retirement
Living Council Director, commented:
“There are many senior Australians
who are deterred now from downsizing, and thereby more prone to loneliness and
isolation. Independent private housing designed for seniors, like retirement
villages, have proven positive health and wellbeing effects. People who wish to
make that move should be supported, not discouraged.”
The conclusions of the AHURI study concur.
Their recommendations for steps to be taken and resources that should be made
available to make housing for seniors more affordable include:
- Providing more specialised services to assist older people in the moving/downsizing process, including forward planning for housing and care needs, financial advice and assistance in the moving process.
- Providing better information and guidance on housing choices and the practical aspects of downsizing.
- Removing financial disincentives to downsizing, including those related to the purchase and transfer of housing (e.g. stamp duty) and eligibility for the Age Pension.
- Fostering innovation within the housing industry focusing on senior housing.
We encourage all seniors, no matter what
their financial status, to understand their options. As Senior Real Estate Specialists we can
help, by offering the services of the first two recommendations, above, for our
clients and their families. With our training and network of professionals, we
provide comprehensive services to help our clients be informed, plan, evaluate
options, and proceed with the move.
The second two bullet points from the AHURI
study are of course policy issues not under our control. One argument continues
that if Australia were to make downsizing more affordable for all seniors, the
result would be twofold: seniors would comfortably transition into smaller
homes, and the larger homes would be released to the marketplace.
We are certainly keeping our eyes on all
developments, because our focus is on improving the experience seniors, and
their families, have as they look to this major life transition. As we learn
more we will write about it here.
We would love to hear your experiences and
your ideas on the best solutions for seniors housing, as either a senior
yourself or the family of elderly parents who are struggling. Please feel free
to comment here, or to email us directly at success@propertyfocusinsydney.com.au
Linda Coskerie: Accredited Seniors Real Estate Specialist
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