Is the ‘tree-change’ retirement option back in vogue?

There has been a surge in demand for properties located in ‘lifestyle’ regions.

Is the ‘tree-change’ back in vogue?

The option of drawing down capital from a highly valued property in the inner city and moving out to the bush has always been an appealing prospect for some retirees, and the idea is undergoing a resurgence in the current financial climate.

CoreLogic head of research Tim Lawless has found that although the pace of capital gains is generally easing as the Australian property market cools, a variety of factors have contributed to renewed demand for properties outside the cities.

A large part of it must be attributable to the ‘wealth effect’, where homeowners (particularly those in Sydney and Melbourne) have seen a substantial wealth boost via their property holdings.

Couple this with a large cohort of baby boomers seeking out holiday homes or relocation options as they shift into retirement age, and the demand picture becomes more pronounced.

Affordability is always an important choice. And it’s definitely one of Mr Lawless’ various factors in retirees shifting away from the city, with analysis showing that hinterland properties tend to be priced lower than those in coastal or big city areas.

“The hinterland areas of the NSW Southern Highlands and the Macedon Ranges in Victoria show the most significant value premium,” Mr Lawless explained.

“The median dwelling value across the Southern Highlands of NSW is just over $735,000, while the Macedon Ranges have a typical dwelling value of roughly $700,000 – not cheap, but both regions show a lower median dwelling value relative to their respective capital cities.”

At the other end of the spectrum is Tasmania’s Central Highlands, where the typical house is worth just over $200,000.

“The regions to see the strongest growth over the past five years are generally very different to the best performers over the past 12 months,” Mr Lawless said.

“The hinterland areas peripheral to Sydney have dominated the capital gain stakes over the past five years; however, growth in those areas has slowed substantially over the past 12 months.”

Have you considered a tree-change or sea-change on retirement? Or have you already made your move? What was your experience of adapting to the change?

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    COMMENTS

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    MICK
    15th Nov 2018
    10:26am
    Currently doing something similar.
    The comment from Lawless are pretty misleading as is anything which comes from the real estate industry. Prices may be high in Sydney but they have well and truly run in the Southern Highlands as well. A house in Mittagong is not all that much less than a house in Blacktown. You might get a better house but you exchange that for many other things you have going for you in the city and once you go you'll unlikely ever be able to return if you have a change of mind.
    Having said that regional Australia in the right spot may be perfect for retirees. Who needs the city!
    Anonymous
    15th Nov 2018
    2:06pm
    China Russia Cuba or Venezuela would be right up your alley
    roy
    15th Nov 2018
    4:14pm
    I bet your current neighbours will have the party of all parties when you move but I pity your new neighbours, they just don't know what's around the corner, the poor souls.
    God help them.
    OlderandWiser
    15th Nov 2018
    11:02am
    The other option is to become an expat overseas where the cost of living is by far cheaper. If you own property then rent it out to increase your income. Your pension will / may reduce but the better lifestyle & lower living costs more than compensates. A lot of westerners move overseas for the better living & lifestyle not just Aussies
    MICK
    15th Nov 2018
    1:27pm
    You still have to pay tax.
    Cowboy Jim
    15th Nov 2018
    11:38am
    Have done that 11 years ago - maybe a bit too early but then as long as you buy at the same time as selling it works out. Unfortunately the GFC came shortly after cashing in the city house which was upsetting at the time. Now after 11 years living here on the coast I would not consider going back to a capital city.
    Anonymous
    15th Nov 2018
    2:05pm
    Well done Jim
    Snowflake
    15th Nov 2018
    12:13pm
    Moved to Tassie just over 18 months ago. No regrets.
    MICK
    15th Nov 2018
    1:28pm
    What region? My wife and I love Tassie. It might be a bit far from anything but worth the effort.
    Triss
    15th Nov 2018
    2:59pm
    Checked out Tassie, too cold.
    roy
    15th Nov 2018
    4:15pm
    Don't tell MICK snowflake, you might get him aa a neighbour, a fate worse than death.
    Cowboy Jim
    15th Nov 2018
    4:48pm
    Agree with Triss, Tassie is too cold, but then we lived for years in North Queensland and that might be the reason we find it cold.
    MICK
    15th Nov 2018
    9:18pm
    Climate is important and yes Tassie is colder but glorious summers. With climate change starting to bite it may well be worth a second thought. Nothing worse than heat and humidity and I for one cannot understand how banana benders can live in the sub tropics and tropics.
    Ardnaher
    18th Nov 2018
    8:05pm
    a place with a mediterranean climate is best in my opinion...tassie too cold and darwin too hot.
    Old Geezer
    15th Nov 2018
    4:09pm
    Moved form Sydney 30 years ago to best place to live in Australia. I wish I had done it sooner is the only regret.
    OlderandWiser
    15th Nov 2018
    4:22pm
    And were is that OG?
    roy
    15th Nov 2018
    4:26pm
    Don't tell them OG, MICK might be your neighbour,God forbid.
    OlderandWiser
    15th Nov 2018
    7:32pm
    Comrade Roy, I asked OG the best place to live in Australia not his address. Your comments aren't relevant to the post or this forum.
    Kaye Fallick
    15th Nov 2018
    7:15pm
    Two posts removed for being derogatory to other members - keep it nice peeps
    Cheezil61
    15th Nov 2018
    9:42pm
    Am already on the bottom of the ladder where I live (rural Vic) prices have been low here compared to other places forever, thus if I were to downsize (ie move to town) it will only be downsizing in physical dimensions & not monetary ones (no money leftover in change, but would probably to the contrary, need to top up my mortgage/borrow more money to afford to "downsize" which really sucks due to getting older & less capable of managing 2 acres of land & a dodgey old home in need of many repairs (which MAY happen AFTER the mortgage is paid off if I"m luck enough to still have an income by then as I doubt the Newstart payments will cover anything extravagant such as repairs/maintenance... doomed, but fortunate enough to have a roof over my head, which is better than some people can say I guess.
    Ardnaher
    18th Nov 2018
    8:04pm
    as long as you are at least 30 mins from good medical facilities it would be fine


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