Are you Downsizing ?

There comes a time in many people’s lives when you start to weigh up how big your home really needs to be.The kids have probably moved out, there are extra rooms and unused space everywhere, and you just don’t have the same requirements that you once did.

It sounds like you’re ready to downsize your home. But as a downsizer, how do you choose the best property for you? Here are some key factors you should consider.

Are you a senior downsizing? Stick with single-level

Most down-sizers prefer homes that are based exclusively on one level, to avoid them having to walk up and down stairs as they get older.

“The ones that we find are most popular for that demographic are properties that are all at ground level,”
“They (homes) don’t have any staircases or anything like that. If they do have staircases or that type of scenario, then look for the properties that have the main bedroom downstairs with an ensuite. They’ll probably sacrifice the first level, or rarely ever use it, but they often like to have it for when people visit.”


A familiar location

Unless they’re chasing a dramatic sea change or a lifestyle switch, the majority of downsizers are looking for a home somewhere close by to their current location.
“A lot of people have spent their entire life there, so they don’t want to go too far from where they are.”
“From a financial point of view that also makes a lot of sense, because if they’re downsizing home in the same suburb or area that they’re currently living in, it’s going to be a pretty straightforward transaction and they’re going to end up with some money in their pocket.”

Preston
Investment property data for 1 bed units
• Annual growth      1.1%
• Median price         $335K
• Median rent          $350/wk
• Rental yield            5.4%
• Rental demand     Average 924 visits per unit
• Est. cash flow        $389/mo

Median price in Preston
The median sales price for 1 bedroom units in Preston, VIC in the last year was $335,000 based on 36 home sales. Compared to the same period five years ago, the median unit sales price for 1 bedroom units increased 5.7% which equates to a compound annual growth rate of 1.1%.


Market demand in Preston
realestate.com.au data suggests there is average demand from people looking to rent 1 bedroom units in Preston, VIC.


Rental yield in Preston
The rental yield for 1 bedroom units in Preston, VIC was 5.4% based on 319 property rentals and 36 property sales over the preceding 12 months.

Rob D'Agostino