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SBS Insight host Kumi Taguchi on the upcoming episode of Housing BOOMERS<\/p>\n
\u201cWe talk about this housing supply crisis but really it\u2019s a bedroom glutton, just these bedrooms aren\u2019t usable in the right kind of places,\u201d he said. <\/p>\n
\u201cThere are nearly two million people in Australia who are actively talking about downsizing or at least thinking about it, but there is a distinct lack of follow through and it comes down to a range of issues.\u201d<\/p>\n
Mr Blythe said many older generations are reluctant to move if they have been living in a house for a long period of time. Often it\u2019s because they are familiar with the local area as well as the cost of stamp duty. <\/p>\n
He added that developers had \u201cuntil recently have not understood what downsizers want\u201d.<\/p>\n
\u201c(Downsizers) don\u2019t want tiny two bedroom apartments, they want something with a bit more space,\u201d he said. <\/p>\n
\u201cThe questions we often get from potential downsizers is will there be room for the family dining table and where am I going to park the caravan?\u201d<\/p>\n
MORE: Warning: common habit costing Aussies a home<\/a><\/p>\n Mr Blythe said government red tape was also making the process more difficult for older Australians, pointing to the recent removal of stamp duty in South Australia as \u201cabsolutely the way to go\u201d to help the process.<\/p>\n \u201cWell over half of potential downsizers have one or two people living in the dwelling, but they\u2019ve got three or more bedrooms empty,\u201d he said. <\/p>\n \u201cThere\u2019s a big mismatch, it\u2019s all about how do you free up those bedrooms and make it more attractive or less costly to move.\u201d<\/p>\n According to Mr Blythe, the goal of a \u2018last homebuyer scheme\u2019 would be to free up larger homes for younger families while helping retirees transition without financial or logistic barriers.<\/p>\n \u201cIt could be pretty much identical to a first homebuyer scheme,\u201d he said. <\/p>\n \u201cIf you switch to helping last home buyers, these are people who are already in the market, you are freeing up supply when they move from their current house into the new one.\u201d<\/p>\n Despite advocating for change, Mr Blythe himself embodies the dilemma. At 65, he lives in a four-bedroom home with his wife and is not planning to downsize yet.<\/p>\n SBS Insight\u2019s upcoming Housing Boomers episode sees Kumi Taguchi explore the debate around downsizing in Australia<\/p>\n Mr Blythe discusses the idea of a last homebuyer scheme on the upcoming episode<\/p>\n \u201cDespite promoting downsizing, I realised last year when I turned 65, I\u2019m right in the middle of that 60 to 70 age range where people do tend to downsize,\u201d he said. <\/p>\n \u201cCertainly two of those empty bedrooms will be at my place.<\/p>\n \u201cRight now we enjoy having that little bit of extra space. I spend a lot of time in the garden.\u201d<\/p>\n He added at some point he will downsize, but does not feel ready at the moment. <\/p>\n \u201cThis older house is becoming more expensive to maintain and at some point pushing the lawnmower around will lose its attractiveness,\u201d he said. <\/p>\n Mr Blythe said he understands the frustration for those who do not want to move.<\/p>\n \u201cGovernments can do more, developers can do more on that financial side,\u201d he said.<\/p>\n \u201cWe need to get the settings right and then I think you\u2019ll see it will happen more freely.\u201d<\/p>\n One option for older Australian\u2019s is downsizing their home to take advantage of the downsizer super contribution<\/p>\n Mr Blythe added that older age groups are at maximum wealth but its also at the point that their income drops dramatically because they have retired. <\/p>\n \u201cThey\u2019ve ended up asset rich and cash poor and living in these older dwellings which are increasingly inappropriate as you age further,\u201d he said. <\/p>\n \u201cHow do you fix this? You can downsize, move to a more age appropriate dwelling and free up some equity there to boost your income.\u201d<\/p>\n Mr Blythe said although there is more assistance needed, there are not enough people using the downsizer superannuation concession scheme already in place. <\/p>\n \u201cIf you\u2019re over 55 and have lived in your current house for over 10 years, when you sell you can put $300,000 as an individual or $600,000 as a couple into superannuation,\u201d he said. <\/p>\n \u201cIts very tax effective of course and a great way to boost your income but it\u2019s a bit of a secret.<\/p>\n \u201cThis scheme has been around since 2018 but according to the tax office only 98,000 people take that up, there\u2019s nearly two million downsizers.<\/p>\n \u201cThere are other options people need to be aware of to look around and find out how to work their way through this crisis.\u201d<\/p>\n Mr Blythe said right-sizing was also important for many. <\/p>\n \u201cBy comparison, there are around one million people who are looking to upsize,\u201d he said. <\/p>\n \u201cIf you start thinking about it that way it raises some other options for yourself and probably some other policy options as well.\u201d<\/p>\n The Insight episode Housing BOOMers airs on SBS at 8:30pm on 28 April or can be streamed on SBS on Demand.<\/a><\/p>\n<\/p>\n
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