by Development Director at Fiducia Property Group | UDIA NSW Women in Leadership Award Winner
May 31, 2023
The first thing I like to say to our clients considering the move from “the big family home” to an apartment is to think of it as a step sideways, one with more upside then downside – definitely a downsizing not downgrading move. Typically downsizers in the past have been slower to make decisions and commit to buying off the plan property for fears of the unknown.
Perhaps it’s a lifestyle change from what they know, perhaps they are overwhelmed in property choices leading to buyer fatigue and indecision, or perhaps it is pure uncertainty around construction and having confidence to know what you are buying into. All valid reasons. In fact, to fear what we do not know is a natural state for most of us. However fear can also provide opportunity if we dont let it paralyze us before we even take a step. Here are 8 reasons why the smart downsizers are pushing fear to the side, doing their homework and making the move:
- Property Availability & Demand – with lower approvals for development affecting the supply of new dwellings across the state, the amount of available off the plan and ready to move in stock available now in the market is low and will continue to reduce as projects are put on hold by developers choosing to hold off. For some “downsizer ready” buyers this will mean having to wait even longer periods of additional years before they are able to make “the move” to their new lifestyle – making it longer and potentially more competitive to find their dream apartment.
- Lifestyle & Wellbeing – Where we live is becoming more important than ever. Most downsizers are coming from larger homes that are usually in isolated areas of bigger fringe suburbs meaning they can feel cut off or socially alone, making it more challenging to socialize, catch up with family or even do their morning walk. Choosing the right property that provides access to amenity, creating relationships where they live, social interaction and maintaining their mental and physical well-being is essential.
- Cost of Living – it’s no secret that costs have skyrocketed for even the simplest things from your morning coffee to the cost of your trolley at the supermarket. With interest rate hikes, changes in the stock markets and movement in housing prices – some wealth loss has been experienced across investment portfolios and downsizers are looking to “cash in” their family home, reduce the overheads of running their larger properties and free up some cash to live on. Choosing the right property in a location that supports accessibility to lifestyle outings like meeting friends, seeing a movie, playing golf, dining out and shopping reduces the cost of travel and the need for permanent transport. Apartment living for downsizers not only means a reduction in the overall cost of the property they are living in, it also reduces maintenance costs on the property, allows owners to share in the cost of common area entertainment spaces and general outgoings of services such as gas, power & water are reduced.
- Timing to Completion – choosing a property that is in construction phase now will mean downsizer property will be ready to move into within months not years. This means downsizers will not be wasting their precious time, can monitor the site progress and plan for a move in date.
- Construction Confidence – where there has been uncertainty in the past around consumer confidence with buying off the plan, quality and completion – construction is now more closely monitored than ever before. The appointment of the NSW Building Commissioner has meant there are frameworks and measures in place to support the good developers and call out the ones who have failed in the past. Legislation for the regulation taskforce now ensures construction works meet building standards and are certified under stricter rules. This type of reform means that downsizers have more certainty around the developer, building and certifying process.
- Off The Plan Contract Upside – with recent upgrades to off the plan sales contracts, downsizers now have additional security around material changes to the property being built giving them a sense of protection and being less vulnerable to developer changes during construction. This enables them to be able to exit the off the plan contract should changes occur.
- Added Value – with any downturn in a market there is an opportunity. As the housing market moves there is the opportunity to negotiate the best price on new property. This means when it comes to settlement there may be a market upturn leading to added value through a well-bought property. Developers may also offer add value packages such as luxury furniture packages, upgrades in appliances, offering to pay out of pocket legal costs, stamp duty payments, lower upfront deposits and in some cases expressions of interest while a downsizer secures a sale on their current property.
- Customised Buying – with the introduction of private appointments to most off the plan apartments, a more tailored experience where downsizers are able to create a customised outcome for the property is available. Downsizers are usually more invested in larger apartments of 3 bedrooms or more with the ability to create a flexible space for work, grandchildren, visitors and entertainment. Sales agents that can provide this mean downsizers are getting closer to designing their ideal places.
Aside from these above reasons, downsizers should also remember that right now there is a limited quantity of exceptional property, in premium locations, built by established developers available right now. So, for downsizers, if you are ready, this means you can use this time to find your new property, start clearing out the old and get on with your life, and that’s good news.
Fiducia are currently offering an amazing opportunity for luxury downsizers beachside Cronulla, Sydney. Callista offers a collection of 12 2, 3 and 4 bedroom exclusive residences tailored for those seeking Coastal Luxury Defined.