The Australian Government has long supported the younger generations’ ambitions to own their own home. First home buyers’ grants and stamp duty and mortgage insurance concessions are all part and parcel of the incentives to drive ownership. Now, in the midst of the COVID-19 economic landscape and in a bid to support the construction industry, the Government’s HomeBuilder grant provides eligible owner-occupiers with a grant of $25,000 to build a new home (or renovate an existing  home). This is the first time a home ownership grant has ever been made to a pensioner and is arguably long overdue.

We are all aware of the high barrier to entering the property market in Australia. This financial blockade has resulted in an intergenerational divide; the younger generation essentially locked out with reduced prospects of securing their first home, versus their parents’ generation who have enjoyed remarkable capital appreciation. But have you ever considered that avocado toast is not the only impediment to the younger generation entering the housing market and that it is partly due to the Baby Boomers?

Increasingly, Australian downsizers are cashing in on the housing market, selling large suburban homes or inner-city terraces to make up a sizeable portion of today’s buyers’ market. Now, with the economic downturn and self-funded retirees taking the hit on their superannuation portfolios, the argument for downsizing has never been more compelling. But what are the perks that come with owning a smaller property and do they outweigh the alternative of keeping the large family home?