By JOHN VAN KLAVEREN
GEELONG is a downsizing hotspot, according to a Real Estate Institute of Victoria study.
The study found that home owners in the city could unlock thousands of dollars of value in their properties if they downsized within the same suburb.
The study used 2011 Census to calculate the equity of retirement-aged home owners, which revealed their downsizing potential.
The study found that 78 per cent of retirees owned their homes outright and 67 per cent lived in homes with three or more bedrooms.
The examples were subject to “normal sale factors” and did not include stamp duty or conveyancing costs.
The study tested three scenarios: downsizing from a four to a three-bedroom house; from a three-bedroom house to a two-bedroom unit; and from a three-bedroom to a two-bedroom unit.
The study found that downsizing houses from four to three bedrooms in Highton could unlock $130,000 in value, while Ocean Grove offered $115,000.
Leopold unlocked $99,000, Clifton Springs $68,000 and Grovedale $56,000.
Highton also offered value for downsizing from a three-bedroom house to a two-bedroom unit, with $110,000 available for owners.
Newtown home owners fared best, with house-to-unit downsizers unlocking as much as $145,000. Belmont offered $72,000.
REIV chief Enzo Raimondo said retirees who downsized could increase their income and remain in the same area.
“Retirees can take advantage of the 25 or 30 years spent paying off their home loan by downsizing. This research will give them the tools to weigh up the options.”
