Since we live longer, are healthier and the federal government wants people to age in the locality as much as possible, pensioners stay in their homes.
This is not helping young families purchase a home, so it is time to put in place guidelines that will help retirees downsize their family homes.
There are hardly any financial incentives to sell the single-family home. It is not part of the asset test for the old-age pension. When the price of a house is rising by $ 800 a day in Melbourne and $ 1,220 a day in Sydney, it is best for a retiree to hold out.
Brendan Coates, of the Grattan Institute, said most retirees stay because they love their home and neighborhood.
“They tend to leave the house when they can no longer physically maintain the house and garden.” he said the Sydney Morning Herald.
One solution would be to build more medium-density homes in Sydney and Melbourne where retirees live.
The NSW government sponsors through their Diversity code for low residential buildings.
Will it be enough for retirees to leave their semi-detached and single-family homes? Most have started families, made friends and love their home.
Could the answer be to find a senior citizens’ village or apartment near you?
With over 2,000 villages across Australia, there is one in every neighborhood. Learn more at Dörfer.com.au