What are the downsizing options in Perth real estate?

If you are at a point in your life where you’re ready to downsize from your existing home to something smaller, chances are you’re feeling disillusioned by Perth’s lack of housing diversity.

The most common and cost effective option for this problem is to wait for a property to come on to the market, but there are a couple of other options you can also consider.

Renovate

One approach is to renovate your existing home so that it better meets your requirements.

While you will save on transaction costs with renovating, this saving can quickly be eaten up by other costs, such as renting while new work is being done.

It might also be impractical if the house is simply too large for your needs.

With renovating, there can be a temptation to compromise on quality and design to save costs, but keep in mind this can lead to a lower re-sale value.

If you are doing a substantial renovation it’s best to obtain professional advice and aim for quality work compatible with the housing stock in the area.

Subdivide

If your property can be subdivided, you might consider doing that and building your new home on one parcel of land while selling the other.

If your property is not suited for this, you might consider purchasing one in the area that is.

This is a good option for people on tighter budgets.

Rebuild or redevelop

If you are considering rebuilding or redeveloping in established areas think about the compatibility of your plans with the existing housing stock and the demand for housing locally. This is important for the re-sale potential.

The bigger issue

More broadly, it is incumbent on local councils and the state government to facilitate an appropriate urban infill policy. This way people are not forced to leave their familiar environment if they need to downsize.

The pressure for this social and cultural change will only increase as our population ages, particularly as the baby boomer generation begins to retire in the next decade.

More affordable units, villas, townhouses and duplexes in suburbs currently dominated by large blocks and houses will help with housing affordability and also with demographic diversity.

The policy around granny flats may also assist.

SOURCE: www.reiwa.com.au