Baby boomers ‘hardest hit’ by heated market

Baby boomers ‘hardest hit’ by heated market

24 November 2014 by Staff Reporter 2 comments

Baby boomers looking to downsize to a more manageable home fear their retirement dreams will be “crushed” by the property market.

According to the Baby Boomers Report, recently released by realestateVIEW.com.au, one in three Australians aged 50 to 69 are uncomfortable with increasing property prices, and fear they will not be able to fund their retirement due to the rise in property prices and associated taxes.

The report also revealed that NSW boomers are the hardest hit, as more than half of respondents believe they will have to relocate to a new area to afford a smaller home.

The Real Estate Institute of NSW said that baby boomers' concerns revolve around price increases, children staying home longer, and managing the same bills on half the money – or much less. Then there are relocation costs.

“On average, you’re going to be paying another 10 per cent to relocate,” REINSW president Malcolm Gunning said.

“If they’re looking to sell high and buy low, best to get out of Sydney. But if they want to stay in the city, they’ll need to adjust their thoughts.”

Mr Gunning suggests possibly looking at an apartment, rather than another family home.

“More is less when it comes to lifestyle. Moving to the inner city, it’s the lock-and-go lifestyle, where strata takes care of the maintenance so owners can simply lock their doors and head off to travel the world.”

According to Greg McKinley, director at Richardson & Wrench Elizabeth Bay/Potts Point, baby boomers are still downsizing.

“We’re still seeing a lot of people come out of big homes and buy apartments, so I don’t see it as an affordability issue. I think it’s more of a lifestyle issue and whether they’re looking for that lifestyle or not.”

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
REVEALED: The 10 best agents in Australia for 2017

For the first time ever, the top 10 agents in the REB Top 100 Agents ranking are revealed in this exclusive podcast. ...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
Do you have an industry update?