Asset-rich empty nesters increase stake in Sydney property market

The latest data released by the Reserve Bank indicates that housing loan approvals have declined by around 15% since the September 2009 peak, however Angus Raine, CEO of Raine & Horne, says the Sydney market is healthy.

“The Reserve Bank’s latest Monetary Statement tells us that around 90% of first timers need mortgages to buy into a home, while only 65% of repeat buyers require additional finance,” explained Mr Raine.

“With first home owners in short supply, which I’m not particularly thrilled about, opportunities have presented themselves for second and third-time home owners including asset rich, empty-nesters.”

“Empty nesters are selling bigger houses and making a sideways or downwards shift into smaller homes and apartments.”

In Sydney’s Inner West, Paul Pettenon, principal of Raine & Horne Concord, said it was common for homeowners from suburbs such as Strathfield, Drummoyne and Burwood to shift to low maintenance apartments at Breakfast Point, Wentworth Point and Pelican Point that come with facilities such as pools, tennis courts and foreshore walkways.

Raine & Horne Concord recently sold a stunning home on a 1200sqm block on behalf of Kevin and Anna Long for $2.13 million. The Longs moved from 26 Cumming Avenue, Concord West, to a gorgeous three bedroom apartment with panoramic water views at 29 Bennelong Road, Wentworth Point which they paid $900,000.

Mr Long explained, “I’ve lived at the home for 42 years and have been a Concordian for seventy years. We were reluctant to sell. But the house has outgrown me and wife Anna. It’s a big house on big grounds and doing the lawns is hard work.

“We wanted to stay in the area near the family and at Wentworth Point there are good medical facilities, near the hospital, our doctor and everyone else.

“The market seems to be good so we made the move now rather than waiting three years. You know in your own heart when it’s time,” added Mr Long who is also selling his promotional products firm, Rave Marketing.

In the Eastern Suburbs, Tony Laing, principal of Raine & Horne Bondi Junction and Raine & Horne Clovelly/Coogee, said volumes had increased in the prestige end of the market such as Double Bay, Bellevue Hill and Rosebay especially in the $3 million+ range as prices have kicked back up.

“Many have made a decision that they can now get a good price for their homes and are downgrading to smaller homes,” said Mr Laing. “Many are moving because they are asset rich but cash poor.”

Raine & Horne Chatswood/Willoughby principal, Hugh Macfarlan said downsizers represent a segment of the property market on Sydney’s North Shore. “There are downsizers who look for bigger prestige two-three bed apartments, which in our region are on the market for between $800,000 and $1.2 million,” said Mr Macfarlan. “A after selling a house for $1.5 million - $2 million, this leaves them with some cash in the bank.”

“Apart from freeing up cash, many retirees are also tired of maintaining pools and the bigger gardens,” commented Mr Macfarlan.

“Many also wish to stay in the area to be close to friends, family and facilities their familiar with such as the local golf club and downsizing enables them to do this.

Downsizers generally look for apartments, according to Mr Macfarlan that come with good size living areas, two bedrooms with a study and are ideally situated on a lower level.

“If not on the ground floor, the block must have lift access, good security and nice terraces,” said Mr Macfarlan. “Downsizers will also prefer smaller blocks rather than big high rise. Three to five stories with no more than twenty apartments.”

Raine & Horne is an iconic Australian property firm, with more than 400 offices worldwide.

Also an established Superbrand along with the likes of Qantas, Vegemite, Woolworths and Myer, the company has four distinct property service brands including Raine & Horne Residential, Raine & Horne Commercial, Raine & Horne Financial Services and Raine & Horne Rural.

For further media information, contact:

Angus Raine, CEO Raine & Horne Ph: 0409 920 697

Alana Drivas, Marketing Communications, Raine & Horne Ph: (02) 9258 5448

Kevin Long, Ph: 0416 135 429

Asset-rich empty nesters increase stake in Sydney property market

Latest data released by the Reserve Bank indicates that housing loan approvals have declined by around 15% since the September 2009 peak, however Raine & Horne CEO Angus Raine says the Sydney market is healthy.

“Empty nesters are selling bigger houses and making a sideways or downwards shift into smaller homes and apartments.”

In Sydney’s Inner West, Raine & Horne Concord principal Paul Pettenon said it was common for homeowners from suburbs such as Strathfield, Drummoyne and Burwood to shift to low maintenance apartments at Breakfast Point, Wentworth Point and Pelican Point that came with facilities such as pools, tennis courts and foreshore walkways.

Mr Long said he had lived at the home for 42 years and had been a "Concordian" for 70 years.

"We were reluctant to sell. But the house has outgrown me and wife, Anna," Mr Long said.

"It’s a big house on big grounds and doing the lawns is hard work. We wanted to stay in the area near the family and at Wentworth Point there are good medical facilities, near the hospital, our doctor and everyone else.

“The market seems to be good so we made the move now rather than waiting three years. You know in your own heart when it’s time,” added Mr Long, who is also selling his promotional products firm, Rave Marketing.

In the Eastern Suburbs, Raine & Horne Bondi Junction and Raine & Horne Clovelly/Coogee principal Tony Laing said volumes had increased in the prestige end of the market such as Double Bay, Bellevue Hill and Rose Bay, especially in the $3 million+ range as prices had kicked back up.

“Many have made a decision that they can now get a good price for their homes and are downgrading to smaller homes,” Mr Laing said.

“Many are moving because they are asset rich but cash poor.”

Raine & Horne Chatswood/Willoughby principal Hugh Macfarlan said downsizers represented a segment of the property market on Sydney’s North Shore.

“There are downsizers who look for bigger prestige two-three bed apartments, which in our region are on the market for between $800,000 and $1.2 million,” Mr Macfarlan said.

"After selling a house for $1.5 million to $2 million, this leaves them with some cash in the bank.

“Apart from freeing up cash, many retirees are also tired of maintaining pools and the bigger gardens.

“Many also wish to stay in the area to be close to friends, family and facilities they're familiar with such as the local golf club. Downsizing enables them to do this.

Downsizers generally looked for apartments with good size living areas, two bedrooms with a study and were ideally situated on a lower level, he said.

“If not on the ground floor, the block must have lift access, good security and nice terraces.

“Downsizers also prefer smaller blocks rather than big high rise. Three to five stories with no more than 20 apartments.”

Raine & Horne is an iconic Australian property firm, with more than 400 offices worldwide. Also an established Superbrand along with the likes of Qantas, Vegemite, Woolworths and Myer, the company has four distinct property service brands including Raine & Horne Residential, Raine & Horne Commercial, Raine & Horne Financial Services and Raine & Horne Rural.

For further media information, contact:

Angus Raine, CEO Raine & Horne: 0409 920 697
Alana Drivas, Marketing Communications, Raine & Horne: (02) 9258 5448
Kevin Long: 0416 135 429