Retirees are cashing in on the hot property market, selling their large homes at a premium and purchasing in retirement communities for an average of 43 percent less than properties in similar postcodes.
Cynthia and Colin Bates downsized six months ago after their family home of 22 years in Mt Cotton, 32km southeast of Brisbane’s CBD, became too difficult and costly to maintain.
“I had been keen to downsize for some time, but Colin really didn’t want to move,” Mrs Bates said. “I began looking at retirement community options and Aveo’s Redlands by the Bay community was the first one we inspected.
“As we were walking out, I said to Colin ‘I love this place’ and he replied, ‘So do I’. The next day, we put a deposit on an apartment.’’
The couple listed their three-bedroom home on the market which sold in five days. They now live in a fully refurbished two-bedroom, two-bathroom apartment in the nearby Redlands by the Bay Retirement Community.
“We were thrilled to receive more than three times what we originally paid for our home,” Mrs Bates said. “We now live in an apartment that’s perfect for our needs. We spoke to a financial adviser and put some money into our super and now we can afford more opportunities to travel, like a recent Mediterranean cruise.’’
The couple have benefitted from the Federal Government’s Downsizer Contribution Scheme which allows the transfer of capital from the sale of a principal place of residence to your superannuation without penalty.
The 2023 PwC-Property Council Retirement Census released this month by the Retirement Living Council revealed the cost of a two-bedroom apartment in a retirement village was, on average, 43 percent cheaper than a median residential home in the same postcode.
Aveo Chief Operating Officer Tony Randello said the data showed that in the midst of a housing crisis, retirement communities were an affordable housing option where retirees could thrive.
“Retirement living isn’t just providing contemporary, age-appropriate and affordable housing for retirees, it’s also playing a crucial role by freeing up larger homes for younger Australians,’’ Mr Randello said.
“Reports show more than 1.4 million older Australians are living in dwellings that are too large for their current needs.’’
Since July 2022, Australian couples aged over 60 have been able to each contribute up to $300,000 from the proceeds of their home sale to their super fund.
“When considering a move into a retirement village most people don’t think of it being a financial decision, but for us, we feel we are better off now,’’ Mrs Bates said. “We no longer have the burden of home maintenance costs like painting, and we know if any major work needs doing, we don’t have to take care of it.
“Now we can relax and enjoy all the facilities, socialise with our neighbours, and enjoy our free time with the added benefit of feeling safe.
“We love living here and already have made lots of new friends who we join for shopping trips and pub visits. I’ve always enjoyed art and now Colin joins me at the weekly art group.’’
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