The “downvestor” is someone who makes a “buy now, live later” purchase, reports Domain.
They buy their perfect “downsizer” home, but rent it out until they’re ready to make the move to the downsize stage of life.
“It might be they don’t feel quite ready, they have other stuff to do first, or they’re simply not emotionally equipped for the big change in lifestyle,” reports Domain.
“As a result, they’re making sure their new property stacks up to be their perfect downsizer home – in time – and in the interim a good investment that will either guarantee them a good return if they rent it out, or decent capital growth even if they don’t.”
It’s the perfect blend of head and heart decision making that can make the downsizing journey a smoother transition to navigate.
Downsizers tend to buy into lifestyle locations. This can include luxury CBD apartments, or seaside locations. Some are even buying into master planned communities with amenities suited to the needs of aging residents.
The retirement horizon could be approaching in the next few years, or more than a decade away. But having the downsize decision already made can make the transition smoother when the time comes.
Looking to downsize? Book a valuation or talk to us about selling.
Looking to downvest? View our current listings for sale and talk to us about landlording.