Budget to offer market confidence.
LJ Hooker Tully Principal Hercules Argyros welcomed this month’s Federal Budget, saying it offered enticements for everyone in the Cassowary Coast region’s property market; from young tenants and First Home Buyers right through to seniors wanting lower-maintenance living.
Home owners aged 65 and over who have held on to their homes for more than 10 years will be given an incentive to sell. From July 2018, they will be able to pour a non-concessional contribution of up to $300,000 into superannuation from the sale of their home. If a couple, both members will be able to claim the contributions.
A recent LJ Hooker-Seniors Housing Online survey of people aged over 55 found 38.3% of respondents were living in properties with two spare bedrooms. Furthermore, almost one in five (18.6%) had three or more unused bedrooms in their family home.
“This incentive is great news for Cassowary Coast seniors who want to realise capital growth and lessen the impact on their superannuation from selling,” said Mr Argyros. “This has been a big consideration for seniors in our marketplace and previously dissuaded many from selling. Now they will have a greater level of confidence to sell the family home and move into an apartment or other residence that requires less maintenance. Conveniently for other buyer groups, it will increase supply in the marketplace if older homeowners decide to sell.”
Mr Argyros said the opportunity for First Home Buyers place $30,000 in voluntary contributions in superannuation at a lower tax rate for a home deposit was good news as well.
“The scheme could work particularly well in the Cassowary Coast region, when combined with the incentive for downsizing; more family homes could come to the market, offering first time purchasers greater buying choice.
“The retention of negative gearing is also welcomed. Allowing investors to offset the losses for management and upkeep of their investment properties enables landlords position their properties at a competitive tenancy price point, making renting more sustainable and increasing supply.”