Budget 2017 Incentive for seniors to downsize

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Budget 2017 Incentive for seniors to downsize

6 yrs ago

Sounds OK to me.

"Retirees holding onto their family homes have been given a $300,000 incentive to sell under a federal budget plan to encourage older property owners to downsize.

Home owners aged 65 and over selling a home they have lived in for 10 or more years will be able to make a non-concessional contribution of up to $300,000 into their superannuation from the proceeds of the sale.

Both members of a couple are allowed to take advantage of this measure for the same home."

8 comments

PlanB

6 yrs ago

I have been in mine for 30 + years and do not intend moving at all -- I worked too hard and too long to get here -- and there is no way I feel like looking for a new place and / or up and moving and there is NOWHERE I would rather be than right where I am

I'm in a similar position PlanB although have only been in my current place for just over 10 years. Prior to that we'd moved every 5 years for about 20 years.

It's huge (bought for two families when my son's family was with us) but it's private, spacious, secure and in a great area. Have told all and sundry, the only way I'll move is if I'm carried out in a box. I get people in to do what I can't do when my health issues max out.

Occasionally do the 'down-sizing assessment thing' via checking properties on the online sites and the financials involved ... but what I'd lose in comfort, security, ongoing property ownership costs and agent fees/stamp duty/legals/moving costs makes me even more determined to remain where I am for as long as I can.

Tried unit living for a while ... never again!! Some Body Corps are a nightmare in my experience. Full points to all those who find good ones or high quality/non-rip-off 'retirement complexes'.

PlanB

6 yrs ago

I would never like a Unit -- have Friends that have a Duplex and also some more Friends that live in a posh unit on the 36 floor -- not for me -- body corps are a real pain plus I can't stand to be so close to others I like lots of space and able to what I want and have privacy -- I have only moved twice in my whole life -- and they can carry me out in a box from here -- like you at this age I sure do not feel like hunting for places and packing up and paying through the nose to some burglar of an agent when this is what I want, I have agents wanting me to sell all the time -- but I wouldn't care what they offered me I am not selling

We will be happy to move into a smaller home with less housework and the freedom to just lock up and leave and go travelling for longer periods.

Getting to stage where hubby is finding the gardens etc a chore and he will have more time to do the things he likes.

PlanB

6 yrs ago

Yes I find mine a chore these days too big garden and all BUT my days of travelling are over -- glad I did it all many years ago

All the best with 'following your dream' Rads ... have fun. Think it's different when there's two rather that one in my case after hubby's death. Not so enjoyable when you can't share.

I think the government should have gone further and made the proceeds exempt from the asset and income test altogether

Allowing the addition of $300k as non concessinal super will not greatly incentivise anyone other than a few self funded retirees

Agreed Raphael.

It was a typical labor budget . Tax and spend .

catsahoy

6 yrs ago

if i down size to anything smaller, ill be in a rabbit warren, lol,

It is ill-conceived policy by people who don't understand the real world. It's a concession to the well-off, who can get a tax advantage (yet again!) but it does nothing for the rest. Anyone who will ever qualify for a part or full pension loses by putting more into super because their pension is cut. Therefore, only the wealthy owners of expensive homes will have an incentive to downsize, and their homes are not affordable for the struggling young. The downsizers will be cashed up and competing with the younger workers to buy affordable homes in areas away from schools and employment, pushing the prices of those homes up. No help for the housing affordability crisis and no help for struggling pensioners. Just another cost to the taxpayer to benefit the well-to-do!

Typical LNP arrogance and supiity - or self-interest!

Rainey what is wrong with people who wish to downsize doing so and putting some of that money into Super if they wish to do so .

Nobody is being forced to do anything , just being offered a choice .

P$cript

6 yrs ago

There is a little problem with the maths of this idea.

After selling and then putting the money into Super, how much is left to downsize to and where will you be able to buy.

Just do the maths for yourself. I did mine and it doesn't add up to be affordable. Consider where you would have to buy and all the extra costs.

Think outside your box

there are so many options

$300k will give you lifetime additional income of $12k minimum without touching the principal

Depends how much you sell your house for ? How much you put into Super and how much you spend on downsizing .

If it doesn't work for you fine no one is forcing you just a choice which is what us righties believe in .

Methinks P$cript would rather just have the welfare

no need to think then

and it's "free" money in the eyes of the lefties

PlanB

6 yrs ago

There is NO WAy I could be fussed on searching for another place/packing up/movong/and unpacking -- NO WAY plus this is where I WANT to be --

And that's the choice you should have Plan B ..

Budget 2017 Incentive for seniors to downsize

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