A new generation of fifty and sixtysomethings are selling up, moving on - and having fun. Brenda McNallyreports

The property market hasn't meant doom and gloom for everyone. One of the least mentioned turnarounds is that people trading down have become the most upwardly mobile.

Thanks to the boom we now have a generation approaching retirement who, on paper, have never been as wealthy.

From large family homes with good-sized gardens in sought-after locations to the modest three-bed semi, this group now owns property worth a fortune, making those considering trading down the latest breed of paper millionaires.

Currently 470,000 people, or 11.1 per cent of the population, are 65 or over and, while Ireland is known to have a relatively young population by EU standards, over the next 15 years, the population will age considerably.

According to projections compiled for the National Council on Ageing and Older People, the 65-plus age group will rise to 15.3 per cent, or about 700,000, and average life expectancy is also set to rise.

So for the growing numbers approaching retirement or considering early retirement, trading down is not so much an emotional break with the past as the financial means of providing for a better lifestyle and a more comfortable future.

In fact, the term "trading down" is really a misnomer. These days it's more an opportunity to trade places, with only the imagination, financial savvy and health as limitations.

"Typically, people are trading down on price to buy a bigger house on land outside Dublin," says Robert Hoban of HOK Country.

"About 65 per cent of our buyers are people moving out of Dublin to a much bigger property in the surrounding counties. Often these are professionals who can commute to Dublin for two to three days a week and also work from home."

It's often more of a lifestyle switch than a monetary one, says Darren Chambers of Lisney, Drumcondra. "Most people trading down spend anywhere from 50-75 per cent of the value of their family property on their next property.

"A couple with a large house and gardens who like to travel or have a place in Spain, would much rather have something they can easily lock up and leave behind without having to worry about maintenance and gardens.

"So if they sell up and get €2.5 million, they spend up to €2 million on a penthouse or luxury apartment nearby and use the rest towards the pension or to buy abroad."

But it's also a bit like winning the lotto, cautions Eamon Porter of Aspire Wealth Management. With €500,000 or so to invest in a second property, to travel or supplement income, you really need to consider long-term value.

"Although there's a perception that many people in a position to trade down can realise a fortune by selling their family home, the reality is quite different. Apartment living is not for everyone. In theory people believe you can sell your house, buy a good-sized apartment close by and net the half a million or so. But no amount of money can compensate for the sense of having neighbours all around you, it's very different to living in a solidly built house.

"In real terms, unless you move to a less expensive location, you're not going to see that much change from a modest family home. If you stay in the same location, you're buying into the same market. This means you really have to own a trophy house to realise significant capital."

Granny flats and extensions remain a popular alternative, says Eamon Donnelly, retirement consultant at the Retirement Planning Council of Ireland. But more people now consider equity release as a means of realising the value of their house while remaining in it.

"Trading down is a relatively new phenomenon. Previously people stayed on in the family home until it fell apart around them. Only about 10 per cent of the older population ever goes into sheltered accommodation. It's far more common for people to stay in their own home and then pass it on to the children.

"But with people choosing to retire early and living more active lives, retirement lasts longer now, sometimes up to 20 years. So trading down is as much a financial decision as it is an emotional one.

"On our courses we recommend that people make a list, in order of priority, of what they want to do in the next five to 10 years. Nine out of 10 times, people say they want to spend more time with family and friends. So don't move away from your home if that's your priority."

There's a growing trend to staying close to home and family, says David Bewley, director of residential sales at Lisney.

"Many downsizers don't want to completely leave their past behind and we're seeing more people looking for smaller period properties or half decent semis so that they have a couple of good-sized rooms, rather than going for a townhouse. It allows them to bring antique furniture, most of which won't fit into new builds."

Trading down to a more manageable property in Ireland and buying abroad is another significant trend Donnelly has noticed among course attendees and in surveys.

"The Irish predominantly buy for lifestyle, but they don't see themselves living abroad permanently," says Noreen Hynes of Aquarius Properties.

We tend to trade down and buy a luxury two-bed apartment with a sunny terrace somewhere with easy access to Ireland. Spain and Portugal are the most popular choices for this reason.

But our home remains in Ireland. Family, friends and grandchildren are very important to Irish people.

"Most just go for the winter months and they see the property as providing a holiday home for the family.

You really need to start deciding what you want and your priorities in your 40s," says Hynes.

"Many people start even earlier, some are buying overseas in their 30s. Most people want to retire by 55, but it usually takes them to 60. The earlier you start planning for it, the more likely you are to achieve that goal."