Among several housing affordability measures contained in this year’s federal budget, a scheme to encourage older people in retirement to move out of big family homes into smaller houses and apartments could have a significant impact on the future of the Australian housing market.
When downsizers move out of their home it encourages the next generation of families to move in and renovate, prompting a positive ripple effect in the neighbourhood.
From July 2018, the scheme will allow people aged 65 or more to put up to $300,000 from the sale of their homes into superannuation, earnings on which are tax-free after retirement.
According to the Property Council of Australia by 2025, the demand for retirement living accommodation for people aged over 65 years is expected to double.
Many councils around the nation are planning now for future demand and actively encouraging investment in residential aged care as Australia’s baby boomer population starts to age.
Generally speaking the older generation are reluctant to leave the family home so a buyer’s agent can help smooth the process.
Buying a home can be a daunting task for anyone let alone someone who hasn’t been involved in the property market for 20 or more years.
The last thing you want to do as you enter retirement, is to make a poor investment decision and overpay for a property when you’re at an age when you can’t recoup the losses.
A good buyer’s agent can help search, evaluate and negotiate a more suitable home, relieving the buyer of unwanted stress and time pressures.
Engaging a buyer’s agent adds yet another layer of protection for the insecure buyer by analysing the data, negotiating on behalf of the purchaser and ensuring they make an informed decision rather than an emotional one.
If you or someone you know is looking to downsize, visit www.rebaa.com.au to find a buyer’s agent near you.