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8DownsizingunlocksequityMelbourneCaseStudyThestudyparcularlyrelatestoreree-agedownerswhowanttounlockequityfortravelortofundtheirlifestyleinrerement.TheRealEstateInstuteofVictoriahasundertakenresearchintothenancialgainsthatcomefromdownsizingbyonebedroomandmovingtoasmallerhouseholdinthesamesuburb.Referencehpwww.reiv.com.auProperty-ResearchCensus-researchDownsizingAccordingtothe2011Census34percentoflonepersonhouseholdsinVictoriaareaged65andabove.Furthermore67ofelderlylonepersonhouseholdsresideinproperesthathave3ormorebedrooms.TheMelbournestudytestedthreemainscenariosDownsizingfroma4toa3bedroomhouseDownsizingfroma3bedroomhousetoa2bedroomunitDownsizingfroma3toa2bedroomunitThesuburbswiththegreatestdownsizingpotenalwereinthemiddleMelbournesuburbswherethereareahighshareofrerementagedlonepersonhouseholdsaswellasrelavelyhigherhouseprices.4to3BedroomHouseOverallresidentsgainedonaverage145000bydownsizingfroma4-bedroomhousetoa3-bedroomhouse.InthesuburbofBeaumaristheaveragegainwas290000.3BedroomHousetoa2BedroomUnitOwnersstandtogainonaverage220000withthetopsuburbofMalvernEastprovidingacapitalgainof463500.3to2BedroomUnitOwnersstandtogain159000incapitalgainwiththisreaching234000inMalvernEast.Figure1Financialgainsfromdownsizingfroma4bedroomhousetoa3bedroomhouse.Orangehighestgain.Figure2Financialgainsfromdownsizingfroma3bedroomhousetoa2bedroomat.Orangehighestgain.Figure1Figure2