HAVE YOU THOUGHT ABOUT ‘DOWNSIZING?

HAVE YOU THOUGHT ABOUT ‘DOWNSIZING?

Many people as they get older, begin to consider if downsizing would be an option for them. Moving house is regarded by many as one of the most stressful times in your life, but moving from a home that you may have spent many years and raised children in, must add an additional layer of anxiety. So, what makes older people consider this and what is it that needs to be considered before making that final decision. I chatted with one of our members Joan Gorman on what is making her consider this option.

A variety of reasons feed into this choice, some are about quality of life into the future and in some cases, it can be to offer financial assistance to adult children or indeed both.
Joan explained to me “It was to use the equity in my house to give my two children what I call a living will, that is to give them the finances I receive, while I’m still alive”, Joan added, “Inheritance Tax is a really sore point with me, I have worked my entire life paying tax on everything only to be told by consecutive governments that I cannot give my house to whomever I want without them paying more inheritance tax”. 

We are all aware the cost of the ongoing upkeep of a house. Much of the larger jobs; painting, and decorating and garden maintenance we could manage when we were younger. Balancing on a ladder, with a paint can is not for the faint hearted, but it becomes more difficult as we age. Many of our members tell us that the cost of ‘outsourcing’ this work can be prohibitive on a pension. Keeping the house warm for ourselves not to mention heating and airing bedrooms not in use, gets harder with the cost of fuel.

Most people, if they make the decision to move, really want to stay in the area they are familiar with. Joan also explained to me “A move is hard but staying near to your GP, chemist and local shops keeps a familiarity that helps with the transition. Being near to their Church and also near enough to visit lifelong neighbours would be important to a lot of people”.

I asked Joan what are the options open to her, if she decides to move. She explained “I live in the Dublin area, at the moment I’ve not been giving any housing options, I’ve been told that when a place becomes available Dublin City Council will be in touch to offer what has become free. I applied two years ago. Last June I was told I am 27th on the waiting list with the person in 1st place having applied in 2005. I have given Dublin City Council two area’s I would prefer. I’m in Dublin City Council area; I cannot apply to South Dublin County Council for senior housing which is ridiculous it’s only a line in the road that depicts which Council you can apply to. I’ve received no information on rent/management fees/car parking spaces. A friend sold her house to Dublin City Council a few years ago, received a one-bedroom apartment which she is paying €50 approx a week. I also have to consider that buying in the open market is not an option, The cost if I sold and bought would not be profitable”.

Not all County Councils offer the option to downsize. This would need to be checked with your local council. For those that do, the requirements may vary. It might only offer this option to past tenants who have ‘bought out’ their home. Some councils do offer ‘private owners’ an option to downsize. Issues to consider and check with your County Council are: Is the value offered lower than the market value; is there a financial contribution required and is there rent and if so, what is the tenancy agreement.

As we all know, the options once you sell and look to buy a smaller property are limited, due to the much-publicised housing shortage. Joan feels “The county is crying out for affordable homes, homes for first time buyers whether to rent or buy. The Irish government know we are an ageing population, 1.3 million approx. over the age of 65 by 2030 (Trinity Tilda Research). I participate in this research. They should be looking more to the future when building houses/apartment. This needs to include senior living within the community that they are building in and to have a constant return of family homes to the market.”

There is a lot of  to be considered if you are thinking of going down this road, but many people who make the move are pleased they did so. However, the Irish Senior Citizens Parliament, strongly believe  that any policy decision, made by the Government relating to this issue, must not apply pressure to older people to ‘give up their house for a family’. If older people decide to move, it must be their choice and their choice alone.

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We thank Joan Gorman for developing this article with us. We also pass our condolences to Joan, on the sad and sudden passing of her son. May he rest in peace.