Aside from anything else, I’ve seen a couple of examples of downsizing up close and in neither case did it end up with them making very much money on the deal. They just ended up with smaller places.
In the first case they ended up with a small apartment which they actually ended up having to sell some of their retirement investments to be able to afford after selling a large family home in the outer suburbs and paying all the costs associated with selling.
In the other case she moved from a large family home in the outer suburbs into one of those “retirement communities”. The whole thing’s a massive scam. You “buy” the unit but you don’t actually own it, you only own a leasehold on it - something they didn’t make clear to her at all. You’re not allowed to even improve or renovate it. They impose rules on you much like a rental. And when you move out you’re not allowed to sell it - they contractually reserve the right to sell it themselves and pay you a massively discounted amount for it. Essentially they steal half the value of what you originally paid in a time when house prices are going up as well. It’s straight up exploitation of people who are old and struggling to even do everyday tasks, let alone understand complex contracts.
in neither case did it end up with them making very much money on the deal.
The point isn’t really to make money (you’re not supporting the current housing crisis with your desire to financially gain from a home are you?? 😉 ), it’s more to move in to something more size and maintenance appropriate.
I guess I was addressing the “living in poverty” part of the parent comment and the suggestion to downsize in your follow-up. I thought you meant to downsize to get some money to pay the bills. But it seems like you’re saying to downsize to get a house which is easier to maintain?
Can’t manage a large property… sell large property, acquire money… purchase suitable sized property and use balance of cash for a motorbike, or a jet ski, or just keeping up with the rising cost of living.
Why go broke (both financially and physically) in a large house as an old person?
Aside from anything else, I’ve seen a couple of examples of downsizing up close and in neither case did it end up with them making very much money on the deal. They just ended up with smaller places.
In the first case they ended up with a small apartment which they actually ended up having to sell some of their retirement investments to be able to afford after selling a large family home in the outer suburbs and paying all the costs associated with selling.
In the other case she moved from a large family home in the outer suburbs into one of those “retirement communities”. The whole thing’s a massive scam. You “buy” the unit but you don’t actually own it, you only own a leasehold on it - something they didn’t make clear to her at all. You’re not allowed to even improve or renovate it. They impose rules on you much like a rental. And when you move out you’re not allowed to sell it - they contractually reserve the right to sell it themselves and pay you a massively discounted amount for it. Essentially they steal half the value of what you originally paid in a time when house prices are going up as well. It’s straight up exploitation of people who are old and struggling to even do everyday tasks, let alone understand complex contracts.
The point isn’t really to make money (you’re not supporting the current housing crisis with your desire to financially gain from a home are you?? 😉 ), it’s more to move in to something more size and maintenance appropriate.
I guess I was addressing the “living in poverty” part of the parent comment and the suggestion to downsize in your follow-up. I thought you meant to downsize to get some money to pay the bills. But it seems like you’re saying to downsize to get a house which is easier to maintain?
¿Por qué no los dos?
Can’t manage a large property… sell large property, acquire money… purchase suitable sized property and use balance of cash for a motorbike, or a jet ski, or just keeping up with the rising cost of living.
Why go broke (both financially and physically) in a large house as an old person?