The downsizer's bible

There comes a time in life when many Kiwis want to downsize to a smaller home. The reality of doing so leaves many frozen like a possum in the headlights. Often the fear is tied up with a lifetime of possessions, says Janice Emery, real estate agent at RE/MAX.

Janice and her business partner Di Connolly realised there was a market in helping such people with an end-to-end move.

The pair have written a booklet giving advice on the process covering issues such as the need to get legal advice and how to source practical help in decluttering, upgrading the property for sale, and even waste collection.

Many clients find themselves alone in a large house and can find it depressing and/or a burden, says Janice.

After decades in the same property they may also feel a fear of the unknown.

“Di and I often assist with the entire process for our clients, not just the selling process, offering advice and guidance and assisting with contacting contractors and even retirement villages on their behalf where necessary,” says Janice.

Clients who face the downsize decision range in age from late 50s to their 80s, says Janice. Often their children have grown up and moved away and there isn’t anyone to help.

The booklet recommends all sorts of specialists and professionals who can help and guides them through the issues involved in a downsize.

“When Di and I decided to specialise in this area we realised that many people are overwhelmed by the process and simply don’t know where to start,” says Janice.

“Many of the older generation have lived in the same family home for many, many years and have attended to all the maintenance themselves.

“It may be only recently that they have not been able to keep on top of things but they simply don’t know who to turn to for help.”

While some of their clients choose to move to retirement villages, others downsize to smaller new developments.

“Retirement villages are fabulous, but some [older Kiwis] are resistant to the idea,” she says.

The latter group tend to choose smaller townhouses or new warm and dry developments that have fewer maintenance issues and little gardening.

Developers in Nelson, where the pair is based, have begun to see a market for this type of housing, says Janice. Being walking distance to the shops and off the hill is also important.

Many of Janice’s and Di’s clients know it’s logical to downsize, but don’t know where to begin.

Since first publishing the booklet they were approached by former police officer Marcia Higgs who runs Sorted To Go and charges a reasonable hourly rate to help in the process of going through possessions and downsizing, says Janice.

She can help the client sort every last drawer and work out what to keep.

The service involves delivering unwanted goods to charity stores, selling on behalf online or disposal where appropriate.

Similar companies such as Elderly Assist in Auckland have sprung up to cater to this market.

They help with decluttering, house and garden maintenance, interior design services to update the house for sale sale of surplus furniture and temporary storage.

Janice says the entire process from contacting the agent to moving into their new home often takes up to a year. “The big issue is how to deal with their clutter,” she says. “Where do they start?”

While many adult children want mum and dad to downsize, that doesn’t suit every parent, says Wayne Lawrie, a mortgage broker who runs Senior Solutions.

Often the older generation has lived in the same area for years and moving would mean leaving friends and familiar neighbours, says Wayne.

Sometimes the adult children suggest solutions such as buying a home and income-type property to house themselves and the parents. Wayne has seen cases where the adult child buys the parents’ home and adds a minor dwelling or similar for the parents to live in.

Multi-generational living on the same property like this can work well for some parents and their adult children. It can also be a disaster during the parents’ lives or afterwards when there are financial complications.

The parents may gift money to the child, buy into the home and therefore the mortgage, or pay rent, says Wayne. When they die, however, the other siblings may have questions about the money put into the home in particular. In a worst case scenario, the adult child might be forced to sell their home to pay out siblings.

Wayne says some older people choose to stay put and, if they need money, get a reverse equity mortgage. This allows them to release some capital against their home. Interest is added to the loan and paid back only when they sell or die.