In recent years, there has been a shift in the housing market. Increasing numbers of empty-nesters and retirees are downsizing from their family homes to smaller properties, such as apartments. This trend has led developers to rethink the way they design and build new homes.
Many developers are now offering lifestyle properties that come complete with concierge services, private lift access, multiple living spaces, gourmet kitchens, and grand-sized main suites with walk-in wardrobes and en suite bathrooms. Plus, they often have spacious courtyards and balconies that provide impressive outdoor living areas.
In other words, these properties have everything that modern downsizers are looking for. As a result, they are in high demand and command premium prices.
However, downsizers living in the Eastern Suburbs face the dilemma of finding an oversized unit in the right location next to shops at prices that will provide them with extra cash to enjoy their retirement.
Let us translate this into simple numbers. The basic four-bedroom home in Dover Heights or adjacent suburbs is worth around $7 million; the selling fee calculated at 1.5% is $105,000, legal fees and additional selling expenses such as cleaning, repairs or styling, say around $20,000 more.
Now let us look at the buying scenario, assuming that you have found a suitable apartment at the right price. If you engage the services of a buyer’s agent, you will pay commission of 1.5% to 2% of the purchase price.
On a $6 million dollar purchase, the buying fee is $90,000 and more; add $356,952 FOR stamp duty, legal fees, moving, and associated costs, say $10,000.
The more significant issue facing downsizers is the lack of oversized apartments available within the price range of $5 to $7 Million. New apartments are selling above the average sale price of a home, as mentioned earlier.
If downsizing is on your mind, I understand that you have many doubts and questions, such as the state of the market, whether you should buy or sell first or how much your home is worth and what you should pay for your next property.
My goal is simple, to offer you an overall understanding of the real estate market without the bells and whistles we all heard in the past 24 months. With every property move, there are millions of dollars at stake, and you are better served by working with an experienced real estate agent armed with years of in-depth knowledge and understanding of the current market.