Retiree incentive a huge boon to home hunters

BRISBANE, Australia - May 11, 2017 - PRLog -- A $300,000 Federal Budget incentive for retirees to downsize their home was enormous motivation and would have far-reaching effects on Australia's property market.

Queensland retirement village developer Chiou See Anderson said the measure, worth up to $600,000 per couple, would free-up well-positioned homes for young families.

"Many retirees hold onto their family homes because they worry about losing the pension but often they are tying up large, inner suburban homes that are close to public transport, schools and shops, which they don't need," Ms Anderson said.

"Often these homes are on large blocks of land, which could be redeveloped with two modern homes – this fantastic incentive will improve the supply of land for rebuilding.

"It will encourage retirees to 'right size' their housing, freeing up their money for travel and leisure – things that are crucial to better health and wellbeing."

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

Both members of a couple could take advantage of the measure for the same home.

Ms Anderson said the provision allowed retirees who felt trapped by their circumstances to do some proper financial planning and move into more appropriate housing.

"It gives them certainty and reassurance," she said.

"But we must make sure those older people who don't have superannuation accounts are properly informed about how to set up and access an allocated pension."

Ms Anderson said retirees who lived in retirement villages were also more aware of the health and wellness services they could access.

"We provide a broad range of preventative health and wellbeing services, such as exercise and entertainment, which you don't hear about if you live alone," she said.

"Our residents talk a lot about the activities that keep them busy and happy; the social contact, companionship and security are extremely important to living a longer, healthier life.

"And retirement villages can offer more services, with greater efficiency.

"Coupled with the new First Home Buyers Super Savings Scheme, this incentive will be a tremendous economic kick for the nation."

Media contact: Barbara Cox, Sequel PR

http://www.sequelpr.com