How To Downsize On The Surf Coast

A snapshot of downsizers today.

Today’s downsizers are often slightly different from those of a decade ago. Not only are they often younger, more active and possibly still working or with kids at home, but they also tend to have far higher expectations when it comes to their property.

Approximately 1.6 million households are planning to downsize over the next five years according to research from Digital Finance Analytics. Of these, 70% are aged between 60 and 70, 12% are aged between 50 and 60 years, and 17 per cent are over 70.

Almost a third (27%) of downsizers do so to pursue a better lifestyle according to 2020 survey data from the Australian Housing and Urban Research Institute (AHURI). A similar percentage of downsizers are motivated by financial reasons, and 18% want to cut down on property and garden maintenance.

In our experience, downsizers tend to put a premium on location, convenience, and space. Stock standard small houses and apartments don’t usually cut it. They tend to want three- or four-bedroom homes within walking distance of lifestyle attractions, such as cafes and restaurants or a beach. If this comes with a fantastic view – and there are many great views on the Surf Coast – even better.

But it isn’t just the local lifestyle that’s drawing downsizers to the Surf Coast. It’s also close to Melbourne and Geelong. This is one of the few parts of Victoria where you really can enjoy all the best that the city has to offer but from a relaxed base that seems a million miles away.

Incentives and obstacles to downsizing

The federal government has encouraged downsizers to make a move by expanding its downsizer super contribution scheme. From 1 January 2023, anyone over the age of 55 can contribute up to $300,000 from the proceeds of the sale of their family home into superannuation, and a couple can contribute $600,000, giving potential downsizers a strong incentive to sell the family home and make their next property move.

But many obstacles still remain. For example, the same 2020 study by AHURI found that 50% of Australians who were over the age of 55 were open to downsizing. Their problem was the challenge of finding the right kind of housing to downsize into – something that actually matched their needs and preferences.

How you can downsize on the Surf Coast

Unfortunately, the reality is that there simply aren’t enough suitable properties in our local area to meet the growing demand from downsizers, and this has been putting pressure on local prices. According to Domain, the median three-bedroom home value in Torquay rose 22.9% in 2022 and 28.7% in 2021, while the median three-bedroom apartment value rose by 40.1% and 27.4% over the same two years.

So if you’re looking to downsize here, you need to have a plan. The good news is that we’ve been able to watch first-hand as so many people successfully downsized to the Surf Coast. Here are our top tips based on what we learned from them.

1. Think about why you’re downsizing

This should be an exciting chapter in your life. Downsizing should provide you with a better lifestyle and make you happier. So before you bite the bullet and sell the family home, make sure you’re ready.

2. Don’t try to recreate your existing life

Downsizing is about freeing up your time (and often money), not about maintaining the status quo. So don’t try to recreate your existing home in a new setting. I’ve had clients turn down homes that seemed perfect because they wouldn’t be able to fit a particular piece of furniture inside. You can always buy a new sofa or dining room table.

3. Be prepared to compromise

Every property search involves some degree of compromise – no matter how large your budget might be. Draw up a list of what you want in your next property but also work out what’s fundamental and what you could live without. You should also work out where you stand on the ‘location v space’ debate. If you’re downsizing, location may come first.

4. Be prepared to act

With competition strong right now, it’s important you’re ready to act when you see the right home. Given prices are still rising in our local market, that might even mean buying before you sell. So get your finances in order, and speak to a lender about bridging finance if you need to.

5  . Think of tomorrow as well as today

The average Australian owns their home for over 11 years, according to CoreLogic research. So, when you’re buying to downsize, you should probably also think about what you’re likely to want from your home a decade from now. For instance, how are stairs or a steep block likely to impact your lifestyle?

6. Do it before you’re desperate

While it’s important not to rush into anything, I’ve also seen too many people make the move to downsizing too late in their lives. By the time they got into their new home, they could no longer enjoy everything it had to offer – at least to its full extent. So be confident and make the switch before it’s forced upon you.

7. Become part of the community

An important part of downsizing to the Surf Coast is to become part of the local community. Don’t leave most of your life in Melbourne or another metropolitan centre. Go local. There are great doctors, hairdressers, builders and every other type of service provider right here. You should also try to join some of our local groups. We have some of Victoria’s best golf courses, as well as a friendly RSL and bowls club. There’s also a great bridge club, many art classes, yoga and pilates, and walking groups.

8. Consider trying before you buy

Finally, if you need even more convincing that this is the right part of the world for you, you could always rent somewhere on the Surf Coast to see how you like it

Get in touch to find out what rental properties are available right now.

Further information?

If you’re interested in downsizing to Victoria’s Surf Coast, contact me for further information.