Rightsizing: the property trend that’s breaking all the rules

One of the holy grails of real estate wisdom was that your average homebuyer started small and then kept trading up: how times have changed.

One of the holy grails of real estate wisdom is that your average homebuyer starts small then keeps trading up as their personal circumstances and markets improve. You start with a one-bedroom flat and years, maybe decades down the track, you’re the proud owner of a detached, family-sized home.

But there’s another growing trend that turns this linear progression on its head – ‘right sizing’.

This may involve switching from high-maintenance family homes to more manageable apartments or townhouses. Or, indeed, the reverse.

Mary-Ann and Johannes Venter with their daughter Neteske at their new home on the Brisbane River at Riverlight North, Hamilton Reach. Picture: John Downs

You see, today, it’s less about following the traditional path of tiny flat to five-bedrooms and more about finding the right home for you at whatever stage of life you are at.

Accordingly, it’s not only older people who are jumping onto the ‘right sizing’ bandwagon. In some cases, couples or young families are moving to larger country or coastal residences.

Others are switching their houses for apartments in city developments which offer up lifestyle options such as luxury gyms and pools.

RIGHTSIZING – EASE OF LIVING

A 2020 survey from the Australian Housing and Urban Research Institute (AHURI) revealed 26 per cent of respondents have downsized and a further 29 per cent of people have the idea on their radar.

Rightsizing is breaking all the rules. Picture: Frasers Property Australia.

“It’s definitely something that’s increasing, primarily because our population is getting older,” says Nerida Conisbee, chief economist at REA Group.

“The main advantage people cite is the ease of looking after smaller properties. A townhouse or apartment that is lower maintenance can be a much easier way for an older person to live.

“Maybe they want to travel; a property they can lock up and leave can be very appealing. Or perhaps it has a concierge to take care of mail or handle any problems that may occur.

“Security (for example, a lift that can only be accessed with a key or swipecard) can be very important too, particularly for that older generation.”

Divorce or separation may lead to one or both parties taking on a smaller, more affordable residence. Others may buy a smaller home as a trade-off for getting a foothold into their dream suburb — such as access to a good school.

Lifestyle is a big drawcard. Picture: Mark Cranitch

HOME SUPERANNUATION INCENTIVES

The AHURI survey found that the primary reasons people decided to move was to improve their lifestyle – for example, if they or a partner had additional health needs that may be better looked after in a smaller space – to have less property maintenance such as gardening and to put them in a better financial position. That final point has not always been straightforward.

Until relatively recently, selling the family home for a smaller, cheaper home could incur tax penalties. Then, in 2018, the Federal Government introduced an incentive scheme that allowed eligible homeowners over the age of 65 to deposit up to $300,000 into their superannuation following the sale of their home.

In the period up until September 2020 an estimated 15,000 homeowners sold up and added around $3.4 billion to their super fund. The scheme has made moving more accessible.

Above all, the trend shows the Australian dream isn’t always super-sized. Home happiness can also be small, but perfectly formed.

A SERIOUSLY ACTIVE LIFESTYLE

Teachers Mary-Ann and Johannes and daughter Neteske have downsized to a Brisbane unit on the Brisbane River at Riverlight North, Hamilton Reach developed by Frasers Property Australia, because it’s a better lifestyle fit.

People look at us funny when we say we’re going to move into a two-bedroom apartment – when we’re only 46 and 47, and have a child – but even in the townhouse we are in now, we’re too far apart. Recently, I came home to find my daughter Neteske had moved her desk downstairs. She said: ‘I don’t like being upstairs and you downstairs’. We like to be in each other’s space and talking. It’s a compliment to parenting really.

We moved to Australia from New Zealand five years ago. We had a bigger house over there but with the weather in New Zealand you have to be inside. That’s what we like about it here, you can be outside all the time. We have a very active lifestyle and Johannes is a serious cyclist. When we saw these apartments being advertised we went to have a look and it was so appealing to be in a unit with all the outdoor facilities. We can even take canoes out for a paddle. We were looking at downsizing because we don’t like being home all day. So this was perfect for a family of three. My daughter is still at university and she works at before and after school care and she’s very excited to come with us. She’s planning on working then coming home to use the gym and then study. We move in at the beginning of May.

It’s just a two-bedroom unit but we love it. We are on the ground floor and we have a little bit of an outside area. We have two beagles who are old, but they still need to go out a little bit. We’re going to downsize the furniture too. Partly because it won’t fit but also we want to buy new stuff to go into the new place. Our motto is less is more.”

Terry and Dawn at their home, Melrose Terrace in North Melbourne. Picture: Eugene Hyland

THE PERFECT-SIZED HOME

Retirees Terry and Dawn are delighted with their revamped Melbourne home.

When we decided to downsize from a large family home for a smaller inner-city property, the perfect house was actually right under our noses. You see, we bought a tiny 1980s terrace in the city as an investment 20 years before but, because of its size, had never considered it as a potential home for ourselves. It was only when a builder friend remarked that, with a few changes, he’d be happy to live in the house because of its great location that we began to see the property in a whole new light. We weren’t prepared to live in the two-storey terrace as it stood though. The floorplan was a bit odd, the rooms were very small and there was minimal to no built-in storage. It just wasn’t practical for us to live there in that state.

We knew what we wanted to do with it though. Our overriding concern was that the house should not feel constrained or cramped. It had to have functional living areas that were both inviting and aesthetically pleasing. So we engaged building and interior designer Dan Gayfer, of Dan Gayfer Design, to transform our little plain Jane and that’s what he did.

We’re thrilled with our little home, our downsizer. We love the finishes and decor throughout the house and the wonderful lounge setting for our evening relaxation.

We are also thrilled with the amazing roof terrace that provides a private entertaining area looking into the canopies of the mature plane trees in the street.

Melrose Terrace House by Dan Gayfer Design. Picture: Dean Bradley.

We don’t feel cramped and have beautiful living areas to move between, inside and out.

In fact, the only thing we don’t have room for is a lawnmower, but then that’s OK … we don’t have a real lawn.”

FIVE THINGS TO DO BEFORE YOU MAKE YOUR MOVE

1. Work out how much your move will cost by gathering at least three quotes from moving companies.

2. Draw up a moving budget. And stick to it. Costs will be cheaper if you’re willing to pack items yourself.

3. Consider worst-case scenarios. What will you do if your household goods get lost in transit? Have you paid for insurance and will it cover the value of your items?

4. Some things such as wedding albums are irreplaceable. Pack those into your car or ask a friend to move them for you.

5. Understand that moving can and likely will be stressful and get as much support as you can.

Originally published as Rightsizing: the property trend that’s breaking all the rules