Design Matters: Innovative idea to help Canberrans downsize in their communities

This week’s interview is with an anonymous but interested reader living in Belconnen proposing an innovative idea to address the ageing in place-urban density issue.

TT: The Property Council’s executive director of retirement living, Ben Myers, said recently in the press: “One of the biggest drags on Australian health budgets is the impact of older people living in three, four or five-bedroom houses not suited for ageing, with high levels of maintenance and trip hazards.” You expressed an idea to address this issue.

A: Indeed, I am pleased to see your article in The Canberra Times recently, outlining a proposal for some sort of owner-driven development to address the ageing in place conundrum. Another initiative to be considered is to develop a register of prospective downsizers who don’t have blocks suitable for downsizing, including those renting, but who have the funds to buy a downsize property.

TT: I think the register is a good idea. Research seems to show that when older Australians downsize, their decision is often dominated by non-financial considerations, such as a preference for a different style of house and living, a concern that it is getting too hard to maintain the house and garden, or the loss of a partner. How do you see the register playing out?

A: The people on the register could pre-purchase the additional new buildings or the original property if it is to be included in the development. I am aware that many downsizers would be happy to live in the newer property and sell the older one. All of these properties should be occupied by owners and there could be a requirement that if sold they have to sell them to downsizers on the list (who would be required to be approved buyers). This way we will keep a stock of properties for downsizers within the general community.

TT: It sounds good: new incentives would encourage seniors to move to housing that better suits their needs, while freeing up equity for their retirement and larger homes for younger families. With your concept does one have to have a property to be considered for the register?

A: Not necessarily; having downsizers who are not connected with the properties to be developed could also provide a source of finance to pay the upfront and building costs before settlement.

TT: For example?

• Related: What can Canberra learn from Canada?
• Related: How I’d change Canberra’s planning rules
• Related: Downsizing affects young and older buyers

A: OK, say I have funds for investment currently receiving small returns. I am not contemplating downsizing, I would be interested in providing these funds to downsizers knowing they had another unencumbered property to sell at the time of settlement.

TT: So this can be an investment strategy as well rather than just straight development? How could this sort of transaction be encouraged?

A: If the federal government would promote and also provide taxation relief for this type of investment, I believe we would have more housing for downsizers and also first and second home buyers.

TT: … and the benefits to the wider community?

A: It would also reduce the reliance on the age pension. I do not receive any government benefits but would like a better deal for all the hard work and effort I have put into acquiring my assets. I also would like to be assured there is a suitable property for me when I choose to downsize.

Tony Trobe is director of the local practice TT Architecture. Is there a planning or design issue in Canberra you’d like to discuss? Email tonytrobe@ttarchitecture.com.au.