Cashed up downsizers

We’ve been talking about downsizing in our industry for quite some time, but it’s almost like a tidal wave. It’s headed our way. This week we look at the opportunities.

Topic – Upskill on downsizing

Mentor – Greg Oddy

  • A vibrant market
  • Very different from their parents
  • Downsizers and social media

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Transcript:

Kevin:   Well, as our population gets older, we’re seeing more and more people wanting to downsize. We’ve been talking about downsizing in our industry for quite some time, but it’s almost like a tidal wave. It’s headed our way. This week, I want to talk about downsizing, look at every aspect of it and what are the opportunities for agents and how should you be gearing towards it if that’s what you want to do.

Kevin:   Joining me to do that, Greg Oddy. Greg is the Director of Sales and Marketing at Downsizing.com.au. We’ll put links on all of our shows this week to get you to Greg’s site. There’s a wealth of information in there to help you, but we’ll educate you this week. Good day, Greg. Thank you very much for joining us. Good to have you on the show.

Greg:   Hi, Kevin. Thanks for having me.
Kevin: I thought we’d kick off by just trying to describe the typical downsizer and how we should be reaching them, trying to understand what they’re like. Can you paint a picture for us?

Greg:   Sure. As far as we’re concerned in the consumer that we deal with, it’s certainly the Baby Boomer market. It’s different to what you might think. They certainly are very vibrant, young for their age type of person looking to … really excited about moving onto the next stage of their life. Quite different to their parents and how they were many years ago. So, they’re very active, and they’re very excited about downsizing, and putting a bit of money in the bank, and moving into a new place, and enjoying the next phase of their life.

Kevin:   Yeah, well certainly. Later in the week, we’ll talk about how developers are coping for that. As agents, it’s important for us to understand demographically where they fit. It seems to me because of the villages that you guys are promoting on your website and that these people are being moved into, they appeal to a much younger audience. Am I right there in thinking that they’re thinking about downsizing maybe a decade earlier than what they used to?

Greg:   Yeah, definitely, Kevin. They certainly are. They’re thinking about that early or even buying a property early to move into down the track, but a lot of people are downsizing before they finish their working life. People are working longer these days, and there’s been some changes in the reasons why people do that. As far as financially, they’re not in a position to, or a lot of their wealth is still caught up within a property and they might still have a mortgage.

Greg:   So, we find that the type of property that they’re looking for as well … Not everyone’s ready to go into a retirement village, which is some of the other things that we sell on our other website are, but they’re looking for good quality properties, smaller with lots of storage.

Kevin:   Yeah. The downsizers hold a huge amount of wealth. As we know, the Baby Boomers coming through either own their house outright or have a fair amount of equity in it. They’re very well equipped to be moving into these villages, aren’t they, financially?

Greg:   Yeah, definitely. I mean, the majority of the people we deal with are cashed up, and there’s been certainly some incentives from the government as far as superannuation goes of late to help extra with that, not only with the wealth that they’ve got but also having a tax break within their super to do so. They’re certainly an attractive bunch from a real estate agent to want to deal with as far as having the money to transact.

Kevin:   How are they researching these properties? Are they doing it on the web? Are they engaging in social media?

Greg:   Yeah, both. I mean, from our point of view, obviously we’re getting a fair bit of traffic to our website, and that’s growing exponentially year on year. It’s up 62% from last year. So, we’ve got a good niche market there and a rusted on core group of consumers that use this bit. We’ve also got a really good following on our Facebook page. We’ve got over 17,000 people that are engaged with our content on the Facebook page, and quite a lot of consumers that are on our database that are receiving our newsletters regularly.

Greg:   So, there’s a bit of myth out there that people in that age bracket aren’t online. It’s certainly not the case. It’s growing rapidly, and we’re seeing that growing more and more each year.

Kevin:   So, agents who have a listing they think could appeal to this downsizing market should certainly be looking into it. The website is Downsizing.com.au. Tomorrow, I’d like to just talk to you about just how big that market is just so we can sort of keep it in perspective. I know you’ve got a paper that you’ll be sharing with us as well tomorrow. My guest is Greg Oddy. Downsizing.com.au is their website. Check it out for yourself. Greg, thanks for your time. Talk to you tomorrow, mate.

Greg:   Thanks Kevin.

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