As we are living longer, being healthier and the Federal Government wants people to age in place wherever possible, retirees are staying in their homes.
This does not help young families buy a home, so is it time to introduce policies to help retirees downsize from their family homes.
There is little financial inducement to sell the family home. It is not part of the assets test for the Aged Pension. In addition, when the price of a house in Melbourne is increasing by $800 a day and in Sydney by $1220 a day, it is best for a retiree to hold on.
Brendan Coates, from the Grattan Institute, said most retirees stay put because they love their home and they love their neighbourhood.
“They tend to leave when they physically can no longer maintain the house and garden,” he told the Sydney Morning Herald.
A solution would be to build more medium-density housing in Sydney and Melbourne, where retirees live.
The NSW Government is encouraging more medium-density housing in Sydney through its Low Rise Housing Diversity Code.
Will it be enough for retirees to leave their semi-detached and detached homes? Most have raised a family, made friends and love their home.
Could the answer be to find a retirement village or apartments in your local area?
With over 2,000 villages across Australia there’s one in every neighbourhood. Find out more at villages.com.au
