How downsizers have changed the market

We are always interested to follow what developers do because they’re so far ahead of the market. Right now they are building for the next generation. So what are the trends?

Topic – Upskill on downsizing

Mentor – Greg Oddy

  • What ticks the downsizer boxes?
  • There is a reason Governments support downsizers
  • More agents are becoming downsizer specialists

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Transcript:

Kevin:   We’ve already identified just how big the downsizer market is. There’s a website that we’ve been telling you about this week that is totally devoted to that. downsizing.com.au and I’ve been talking to the director of sales in marketing from downsizing.com.au Greg Oddy. Greg, welcome to the show again. Thanks again for your time.

Greg:   Morning Kevin.

Kevin:   I want to talk today if we can about how the market has changed to accommodate downsizing and we’re always interested to follow what developers do, ’cause they’re so far ahead of the market and they’re starting to build properties for, not so much the next generation, but certainly the next decade. So can you just tell us what you’re finding from talking to developers about what they’re doing?

Greg:   Yeah, I’m having conversations with developers all around the country, in particular Sydney, Brisbane, and Melbourne and they’re really identifying in some of their locations that they’ve got … One instance in Sydney, we’ve had a client come on board and they were telling us that 70% of there inquiry was essentially people that were downsizing, and some of these developers are now starting to compete with retirement villages in some regard as far as competing for that dollar, and some of them are really attuned into what the downsizer’s looking for, and we touched on a little bit of this earlier in the week, but certainly about definitely quality appliances, but it’s about storage as well. That’s internally and things like wider doors and lower power point in case one or both of the partners end up in a wheelchair down the track and also externally as far as gyms, pools, and tennis courts, which you’ll find in many of retirement villages. A lot of the developers understand that, that needs to be part of the complex in certain areas to cater for the downsizing market.

Kevin:   Also recent legislation for downsizers to obtain some tax breaks. I mean the government realised just how important this demographic is or the need for more accommodation for these people, but it also frees up some of these big homes for growing families Greg.

Greg:   Yeah, absolutely. I mean the government has put in some legislation around superannuations and some tax breaks for people to downsize and move into something smaller. There’s a lot of people unfortunately that my have been left on their own in a four or five bedroom home in some of the suburban areas around our major metro areas and the government understands that there’s a lot of people that could be living in those homes if we can find somewhere else for these people to downsize into, so they’ve tried to put some incentives in place for that to happen, which time will tell how that will work out.

Kevin:   Yeah, I think it’s a good move actually. There’s another point to make and that is, we identified earlier in the week that some of these people who are looking to downsize retire, they’re doing it much earlier in their life. They’re still very actively working, so therefor they’re active, they’re still fit, they’re looking to get located near things like bike ways, and gyms and so on so they can maintain that health Greg.

Greg:   Yeah, absolutely and either buying the property early and looking to move there and commute to metro areas. I think of places like Ballarat and Bendigo where it’s still easy to get into Melbourne a couple of days a week and work from home. Central Coast as well. Some people are downsizing, still working for the next few years and working a couple of days from home and then also heading into the city a couple of days a week. So we’re seeing a lot of people doing that as early as in their 40s, definitely in their 50s of course, and taking advantage of getting into the market now and set up where they want to be and putting their roots down with their new community.

Kevin:   I know Greg talking to you off air you’ve got relationships with a lot of real estate agents, at agencies all around Australia. Are you noticing many of them are actually really focusing on this by getting someone to specialise in that downsizer market?

Greg:   Yeah, I’m noticing more and more as I mean we’re becoming more and more popular and getting on the shopping list of more and more real estate agencies and what I find is there’s a lot of real estate agencies out there that has someone who specialises or has a knack of working with the baby boomers/ retirees/ downsizer person in their community and a lot of these people potentially are baby boomers themselves that are real estate agents that are working with people of a similar age bracket, not always, sometimes some of the young people have a good rapport with some of the more older demographic, but I am finding that in some of the offices around the country there’s definitely a specialist who says I’m the guy that looks after, I’m the guy or the girl that looks after the baby boomers in this area.

Kevin: Yeah, it’s a great insight. It’s been fantastic this week, to spend some time with you Greg. I appreciate that, helping us understand this market a bit more. Downsizing.com.au is the website. If you think you’ve got a property or if you want to know a little bit more about it, that’s the website to go to and have a look at. We’ve got links all over our pages all this week, or if you miss them just send me an email or send it directly to Greg. His email address is greg@downsizing.com.au, but as I said, there are links all over our pages, so I’m sure you’ll be able to find him. Greg it’s been great talking to you mate. Thank you very much for giving us this wonderful insight and we look forward to having you back in the show again real soon.

Greg:   Thanks Kevin, it’s been great. Thanks a lot.

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