Latest news with #downsizing
Daily Mail
14 hours ago
- Business
- Daily Mail
Why boomers are holding on to their massive homes - even if they want to downsize
Aussie boomers are often criticised for not downsizing, but there's a good reason why they're holding onto their big properties. New data from the Regional Australia Institute shows that only 25 per cent of Boomers - aged 65 and older - are open to moving from a capital city to a regional area - the lowest of any age group. In contrast, 57 per cent of Millennials and 37 per cent of Gen Xers are more willing to make a tree change. Selling a $2million home in Sydney could allow a couple to buy a $1million property in coastal towns like Port Macquarie or Coffs Harbour - leaving them with $1million in cash. But that windfall could affect their eligibility for the age pension due to the government's assets test. While the family home is exempt from the test, any leftover funds, whether held in cash or superannuation, are counted. As a result, many older couples are choosing to stay in their large homes to protect their pension entitlements, despite no longer needing the space. Financial adviser and author Helen Baker said older Australians are delaying selling their homes to ensure that they maximise their pensions. They usually only sell when they've run out of super and downsizing is their back-up option to release more cash. A couple with $1million in cash, after selling the family home, could potentially put that money into super and live off an income stream known as an annuity. But having access to the age pension, or a part age pension, can help with bills ranging from electricity to health costs, plus travel. 'There are benefits in even getting a part age pension,' Ms Baker said. The Association of Super Funds of Australia says couples need $73,875 a year for a 'comfortable' retirement which includes an overseas holiday every seven years. But with access to an age pension, it's possible for those aged 65 to 84 to live on $43,753 a year. When it came to younger Australians who don't own a home Ms Baker, the founder of On Your Own Two Feet, suggested they consider purchasing an investment property with a friend or a sibling to at least get into the housing market. 'I think the problem for younger people now is they don't get in,' she said. 'It's likely that property will continue to rise over the short-term, maybe, and even definitely the medium, long-term.' Australia's median capital city house price of $1.026million is beyond the reach of the average, full-time worker on a $102,742 salary. That's because the banks are reluctant to lend someone more than 5.2 times their salary before tax. This means an average-income worker would only be able to buy a $665,000 apartment with a 20 per cent mortgage deposit. Those wanting a house would have to do so with a friend or sibling if they weren't married or in a long-term relationship, unless they were in a highly-paid job. 'The nurses, the teachers, aged care workers, childcare workers, hairdressers, for these people, it's incredibly difficult for them to purchase a property but those who are in more executive positions, or even tradies these days with what they're earning, they have more of an opportunity,' Ms Baker said. 'Are they willing to make the sacrifices in other things that they're spending their money on - to meet the obligations of their mortgage?' The e61 Institute think tank said unaffordable house prices meant younger Australians were delaying key milestones like buying a house or starting a family. 'Today's young Australians are navigating a different economic and social landscape than the generations before them,' it said. 'While young people always face a degree of precarity as they transition into adulthood, there are social and economic changes, as well as changing preferences, that are pushing key life milestones – like buying a home, moving out of the family home and starting a family further down the track. 'Today's 25 to 34-year-olds have a lower home ownership rate compared to their parents when they were the same age – with this disparity greater in capital cities.' This is also particularly the case for those unable to access the Bank of Mum and Dad to get into the housing market. Millennials are increasingly relying on their boomer parents to set themselves up financially, including with that 20 per cent mortgage deposit. Ms Baker said this was now the new divide between the haves and have-nots. 'There's a lot of talk about getting some early inheritance from the Bank of Mum and Dad,' she said. 'To me, this deposit for a house and buying a property, it's become the new private school.' Those boomers helping their children - by selling their family home - are also making a financial sacrifice by comprimising their ability to get the age pension.
Yahoo
21-06-2025
- Automotive
- Yahoo
I'm a Retired Boomer: 4 Car-Related Costs I Eliminated To Save Thousands
Retirement comes with freedom but also more responsibility when it comes to money. For many retirees, car ownership is one of those sneaky expenses that eat into their savings. GOBankingRates spoke with Scott Larson, retiree consultant at ClearCaptions, who shared how he re-evaluated his household car situation and uncovered several car-related costs he eliminated to save thousands. Read More: See Next: 'When I retired, our household car situation was one of the first adjustments that we made. We downsized to one car and that in itself felt like immediate money back in my pocket,' he said. Below are four expenses Larson cut after downsizing to one car. Also here's how to live without a car in retirement to save money. Gas costs can drain a retiree's budget. A second vehicle sitting unused most of the time still requires occasional driving to maintain the engine and battery, meaning you're paying for gas even when the car isn't serving a practical purpose. For Larson, downsizing to one car means less money spent on gas and more money in the pocket. 'I felt strongly about selling my vehicle, as it was a nice little nest egg to tuck away for emergency funds.' Check Out: Many apartment complexes and senior living communities charge monthly or annual fees for extra parking spots. Larson was able to cancel one of these recurring charges after selling his second car. Downsizing to one car meant that Larson no longer needed to pay for two insurance policies. That decision alone saved him hundreds of dollars yearly. Auto insurance premiums vary widely depending on location, coverage and vehicle type, so having fewer vehicles means fewer policies to maintain. The most unpredictable expenses associated with vehicle ownership are maintenance and repairs. Even well-maintained cars require regular oil changes and unexpected repairs can cost hundreds to thousands of dollars. 'With so much in the air for retirees and benefits right now, finding ways to trim back expenses is a great idea,' Larson said. 'Every dollar we don't spend is another dollar that can be spent on independent living.' More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 4 Affordable Car Brands You Won't Regret Buying in 2025 Clever Ways To Save Money That Actually Work in 2025 This article originally appeared on I'm a Retired Boomer: 4 Car-Related Costs I Eliminated To Save Thousands
Times
20-06-2025
- General
- Times
Marie Kondo was wrong — decluttering sparks no joy
I have really tried very hard to master the art of decluttering. The process of downsizing my possessions has been going on in a serious fashion for two years. I have been to the tip at least 50 times. Thousands of pounds worth of stuff has gone to charity including three sofas and (largest item) a super king bed. I have read many guides, including Marie Kondo and the less twee manual Nobody Wants Your Sh*t, to the point where I now need to declutter the books on decluttering. I have held up countless items, often looking worse for being seen in actual sunlight, and asked: 'Does this spark joy?' Almost none did. Instead, they sparked regrets (I'm no Piaf) and, at times, guilt.
News.com.au
19-06-2025
- Business
- News.com.au
The surprise path to downsizing in comfort while staying near the city
Inner Brisbane downsizers are being offered the chance at luxury units right where their old homes were, without sacrificing space in their new apartments. Developer Arden Group has announced Park House on Crosby: a complex made of 56 luxury residences, overlooking Crosby Park in Albion. The residences are being designed for wealthy downsizers in the area, looking to have an easier apartment lifestyle without changing where they live. Each unit in the building has been created with a large open-plan layout, designed by architects at Cottee Parker to feel more like a house than an apartment. Cottee Parker principal and manager of interiors, Dee Passenger, said the development represented a rare opportunity for wealthier buyers in Brisbane's increasingly competitive market. 'This is a pretty unique project, especially for its location,' she said. 'Typically apartments aren't very large in that sort of precinct. So what this developer has done is they've seen a gap in the market where people are downsizing but want to stay in the area that they were living, in a proper home.' Ms Passenger said the complex was built with a 'biophilic' design: 'where we bring plants and natural things into the facade of the building, into pots and plants that surround the perimeter, and bring that green landscape in.' 'Even though you're in an apartment, you feel connected to nature,' she said. Each unit in the development is said to offer oversized balconies with views of the city or the park, and 12 penthouse and luxe apartments are available as corner units at a higher elevation. Residents will also share amenities such as an infinity pool, spa and gym, along with rooftop entertaining spaces and BBQs where they can get to know one another. 'These amenities and spaces are really a way of bringing that community together,' Ms Passenger said. 'It's a small boutique building. You're not sharing it with [lots] of other people, so you've really got that village neighbourhood feel … everyone will get to know everyone.' Prices begin at $2 million, according to their website, with further details to come in July.
CTV News
19-06-2025
- Lifestyle
- CTV News
ADVERTISEMENT Atlantic Watch A home on wheels! Crystal Garrett chats with a couple who downsized to live full-time in their Airstream trailer.
Atlantic Watch Crystal Garrett chats with a couple who downsized to live full-time in their Airstream trailer.
