Downsizers get incentive for selling family home:
The latest federal budget contains a positive measure for the property market in Australia and for downsizers. Because of the costs involved with trading houses, many older Australians have opted to renovate their family homes. This is despite the house size and gardens no longer suiting them. But now, there's a real incentive for home owners aged 65 and older of 10 years or more ownership to downsize their home. They may now sell their home and place up to $300,000 per person ($600,000 per couple) in their superannuation fund. These budget changes in more detail can be found here.
The benefit for older downsizers looking at "right-sizing" their home is that:
- funds within the superannuation space are the most tax effective, especially heading into retirement (or pension phase). This is a way to add to the superannuation balance.
- Of course, they also get to live in a more suitable, lower-maintenance home too.
There are benefits also to the property market in general too as:
- young families requiring these larger homes would have more stock to choose from, potentially alleviating supply pressures.
- If zoned for development, it would be freed up for additional new dwellings to take its place. This creates construction jobs and would accommodate more people within existing amenities. This is opposed to clearing more land further from the city, installing more infrastructure and putting pressure on the environment.
Recently, the real estate industry body of WA, REIWA have proposed a further incentive for downsizers for a potential discount on transfer duties (stamp duty) by $10,000 for downsizers over age 65 years looking at buying a home.
Of course, many older downsizers may not wish to move too far from their current locality. That's where joining forces with other like-minded buyers to purchase a site to build on together makes sense. You could register your preferences for free with Catalyst Developments, and be matched to these qualified buyers also wanting to build together.