They found that, on average, people who moved from a four bedroom to a three bedroom house stood to gain $145,000. Those who moved from a three bedroom apartment to a two bedroom apartment gained an average of $159,000.
Unsurprisingly, people who stood to gain the most equity according to their survey were those who moved from a three bedroom house to a two bedroom apartment. On average, they would gain $220,000.
Historically, retirees have shown a preference towards downsizing their property. Part of this reason is because that they no longer need to own a large family home after their children move out. They can also benefit from a significant rise in the price of their property if they have been owned for several decades.
Chief executive officer for REIV hopes that the research will inform retirees that are considering downsizing.
Posted by Craig Francis