Decision to downsize a win-win for retirees and their children struggling to enter market

Frances and Robert Dempsey thought outside the square when it came to the downsizing challenge, which had benefits for the whole family.

They sold their large Figtree house for an affordable price to their daughter and son-in-law, and the couple has moved into a Wollongong unit.

“With three children, they were on the rental treadmill of trying to save for a house while constantly having to move out of rental premises when owners sold up,” says Frances.

“They knew what they were getting with our house and they paid a fair price so it works for them and for us, and the house stays in the family.”

The Dempseys, both retired primary school teachers in their 70s, are a downsizing success story, but they do have some gripes about the costs involved, such as stamp duty fees.

“We have discussed downsizing with many friends and stamp duty in particular is a big issue,” says Frances.

“If government wants people like us to free up housing stock, they should do something about reducing or abolishing stamp duty – Victoria has abolished it, so I don’t know why we can’t do the same.”

Another financial surprise were strata costs, which, on some of the units they viewed, were often well above the quarterly rates they paid for their home.

Other than that, the couple is happy with their two-bedroom unit in central Wollongong.

“One of the sticking points with most units in our price range was finding a third bedroom for an office space – our unit has a sunroom, which will do the job,” says Frances.

She and Robert agreed that taking time to make the transition was an important element in their positive outcome.

“We took about two years before we made an offer, during which time we met many real estate agents along the way and we made it clear we would not be rushed,” says Frances.

“We told them, we know what we don’t want, but we’ll know what we do want when we see it.”

Robert, who has had two knee replacements, is happy to find a home without steep stairs and they both love the central location, which is within walking distance of shops, a library, theatres and parks.

“And we are close to the rail station, which is perfect because we love travelling,” says Robert.

Frances arrived in Australia 50 years ago from Scotland as a young primary school teacher and worked in Albion Park Rail, Warilla, Lake South and Kiama.

“Robert and I didn’t teach at the same school but we met in that social circle,” she says.

After a series of moves, they bought the Figtree home a decade ago.

“It is a lovely home but we knew it was time to downsize to make life easier,” says Frances.

“What has made our move less traumatic is that we don’t have the wrenching experience some people have of leaving a house filled with memories.”

MMJ Real Estate agent Daniel Hastings says the issues that put people off downsizing include the need to sell their property first because their equity is tied to the home.

“Loving their existing home, even if it’s not practical anymore, and their concern over the increasing cost of strata fees are also issues that hold people back from downsizing,” he says.

His top tip? “If you can’t secure a property before selling your home, aim to have an extended settlement to allow more time to find your new property.”