What downsizers want - March 2025

By Rich Harvey, CEO & Founder, propertybuyer.com.au

Australia’s demographics are changing as our aging population seeks housing more suited to their next stage of life. As such, I’m not surprised to see an increasing number of downsizers seeking our assistance.

Australia’s seniors now officially comprise 16%, or 4.2 million, of the country’s total population. Recent government figures place around half of this number (2.1 million) at 75 years old and over – and that number is expected to surpass 3.2 million by 2034. In addition, life expectancy is set to rise by nearly four years as well. So, one thing’s for sure: if you, or your parents and grandparents, are reaching their downsizer period, now could be a good time to think about what kind of property they’ll want in the future.

The downsizer budget

In general, downsizer budgets for purchasing a home are well in excess of Millenial or Gen Z ones. There’s a few reasons for this but the big one is that seniors’ long-term holding of their homes (think 20 years or more in the same house, or at least, the same location).

Most of these homes have experienced extraordinary capital growth over this time, which in turn has produced impressive personal wealth for downsizers that’s locked away in their equity. Don’t be surprised to see Baby Boomers and the generation preceding them – the Silent or Traditional Generation (between the two, we’re talking people aged anywhere between about 60 and 95 years) sell their properties and have abundant cash on hand. It's little wonder that Millennials and Gen Z-ers are so envious of downsizers.

Downsizer locations

The typical downsizer is often at a point in life where they want to live closer to the “action” – ie they want to live closer to lifestyle amenities they can walk to. Many downsizers I know have lived for decades in the suburbs close to good schools for their children, and then dutifully commuted longer distances to work so the kids can be remain near their school and friends. But now the children have left home – it’s the parents time to shine and they don’t want to have to drive to the cafes, the beach, the restaurants and their favourite spots – they want it all to be much closer! And yet they still want to stay close to family members and have ready access to medical facilities down the track.

What a downsizer likes

All this extra cash aside, here’s what I’ve found downsizers would like most in their next home. While number one on this group’s list is obviously a smaller home, most downsizers opt for a two or three-bedroom property with a second toilet, if not a full second bathroom. This is because while the kids may have left the comfort of home, there’s a likelihood they’ll return

at some stage for a period of time. Besides, there’ll be guests to accommodate – including grandchildren – so having extra space for visitors makes sense.

Other downsizer requirements for a new home include:

• Single-level living or, at least, a lift. Downsizers want to be able to get around their home comfortably for as long as possible. These features make sense as a forward planning measure.
• Low maintenance to ensure not all your spare time is spent keeping the house up to scratch. Low maintenance homes also lend themselves to a lock-and-leave scenario, making the decision travel easier.
• A small garden, which is also easily maintained. Gardens have huge appeal for retirees as a safe outdoor space for a bit of work and exercise. They do, however, want to avoid anything that too comprehensive or that requires a lot of upkeep.
• Plenty of storage. Downsizers will have accumulated heaps of “stuff” over the years, and that needs to go somewhere.
• Lock-up car accommodation. This is a security issue of course, but cars are often the pride and joy of a downsizer too. Keeping them in great condition, in a secure space away from the elements is a must. And many blokes love to tinker in the garage or have a shed for those hobbies they put aside during the hectic working life.

Beyond the home, downsizers prefer a quiet street with easy access to public transport, shops and other amenities. I’ve also met downsizers, especially the grey nomad type, who are keen for somewhere to park a caravan or boat. They don’t want to upset the neighbours or attract unwanted attention from burglars by leaving their “toys” parked on the street.

Government incentives for downsizers

While I’ve met plenty of downsizers ready to sell right now, there’s still many choosing to stay put, rather than lose some of their great capital growth by paying stamp duty and other charges. However, several government inducements have been introduced in the past few years to assist and incentivise downsizers out of their large and often impractical family homes. One is the Downsizer Super contribution, which was introduced in July 1, 2018. This plan allows people aged 55 years and older to contribute up to $300,000 from the proceeds of their house sale into their superannuation fund; however, downsizers need to have owned their house for at least 10 years.

This is a great tax measure as contributions to super are only taxed at 15%.

Victoria, the ACT, and Western Australia also offer stamp duty discounts for downsizers.

Downsizer challenges

I’ve talked to seniors who are overwhelmed by the idea of moving – and I’m not just talking the sale of their home, or the purchase of another one. Spending 20 years in a family home usually equals an immense amount of furniture and other items, which all needs to be sorted out before selling.

How will our large family dining table fit into a small apartment? What will I do with my garage full of tools and projects?

This is mainly why I recommend that downsizers, or those with a senior family member thinking of downsizing, carefully consider the whys, wherefores and how to’s of moving well in advance. But this is where an experienced, independent buyers’ agent can flourish. Our expertise allows downsizers to rest easy, safe in the knowledge they have a well-connected specialist on their side. We take on the hard work to help downsizers achieve want they want in terms of a home and a lifestyle.

If you or yours are considering a move to something more practical, then contact our team. We stand ready to help you shift easily into the next stage of your real-estate life, and can show you all the benefits a well implemented downsize can bring.

 To have one of our friendly Buyers' Advocate's contact you, click here to:

   or

call us on 1300 655 615 today.