Enjoy 10% OFF your first listing. Receive your personal promo code: Signup Now. Remaining.

Limited time offer. Enjoy 10% OFF your first listing. Receive your personal promo code here: Signup Now

Days
Hours
Minutes
Seconds

The PropertyNow Blog

Downsizing your home? New tax incentives may help

a graphic image of a green door and the text 'Downsizing? New tax incentives may help!'

As you get older, the idea of downsizing your home becomes more appealing. Only you’re concerned about losing money to stamp duty and your Age Pension.

If the government passes new incentives for downsizers in the next budget, your troubles could be answered.

In with the young, out with the old. This is the government’s latest solution to our housing affordability crisis. Although the details are a little sketchy at present, the plan is for retirees to receive financial incentive to downsize their family home in a bid to release more housing stock to the market for younger families.

So, if the thought of downsizing has crossed your mind, it could soon be time to bite the bullet.

If the new incentives go through, you’d benefit from two main areas:

Stamp Duty.

Stamp duty is one of the biggest deterrents for elderly people considering downsizing – and according to the Productivity Commission, that’s 15% of you. But the government’s proposed tax incentives include a one-off exemption from stamp duty for elderly citizens purchasing a smaller property. On a NSW property worth $500,000, that’s a saving of $17,990. This would mean you get to keep the majority of the profit from selling and downsizing, which could be used to boost your retirement income.

Age Pension.

Profits from selling your family home currently affect the welfare payments and concessions available to you. Under the new budget plan, you’d be able to quarantine up to $250,000 from the asset test so long as the funds are invested in aged-care bonds or an approved superannuation scheme. This way, your super gets a boost and your Age Pension is unaffected. The exemption would operate with a time limit to allow you to buy your next home.

It means greater choices.

Under the new scheme, you’d no longer be locked into a home that’s too big, expensive and time-consuming to maintain. And you wouldn’t be trapped in an asset rich, poor income situation, which is a common scenario for many retirees these days.

Selling your family home can be an emotional decision and not one to take lightly. You need to weigh up all the pros and cons and make sure it’s the right decision for you. Whether the new budget plan would be enough to entice you to downsize should depend on your individual situation and finances.

Not yet subscribed? You’re missing out! To keep up-to-date with the latest property news, subscribe today.

We can’t wait to help you sell!
Did you know PropertyNow can list your property on all the major real estate websites, and give you all the real estate support you need to sell your own home and help you save thousands in agent commissions? You do now!
Contact the PropertyNow team to learn how easy it is to sell your home without an agent:
a small wooden toy house surrounded with flowers

Why this Spring could be the best time ever to sell property

Thinking of selling? Why this Spring could be the best time to sell ever… Spring has always been a busy...

a man's hands holding a small globe with the word 'coronavirus' on it

Should You Sell Your Property During Coronavirus/Covid-19?

As the impact of Coronavirus/ Covid 19 begins to ease, confidence in the property market is increasing. It is proving...

an aerial view of Sydney with the Sydney Opera House in the background

Coronavirus and important changes that affect homeowners

Many people are wondering, "Can real estate agents still work amid Covid 19?" The answer is a resounding, "YES!" In...

a cartoon of a man using a giant umbrella as a shield against viruses

Open House During Pandemic – How to Manage It

Not sure how to manage your private inspection or open house during a pandemic? We've got all the answers for...

a hand using the trackpad of a laptop

Use a realestate agent or sell your own property via an online agent?

Having trouble deciding whether to use a real estate agent or sell your own property via an online agent? We’ve...

a graphic image of a man in a suit and the text 'Do Victorian Landlords Have Reason For Concern?'

Planned Changes to Victorian Rental Laws. Do Landlords Have Reasons for Concern?

In 2018, the Andrews government plans to make changes to Victorian rental laws – how will they affect you as...

a graphic image of a burning house and the text 'What Is Landlord Insurance? And Do You Need It?'

What is landlord insurance and do you need it?

These days there’s insurance for, well, just about everything – houses, cars, holidays, pets… Some people hoard insurance like canned...

Foreign resident withholding tax for all sales over $750k

Selling a property with a market value over $750k? Then the ATO’s new rules for foreign resident withholding tax will...

The Australian housing market – what’s happening in 2017?

In 2016, the Australian housing market saw high demand, low affordability and our two biggest cities grow even further out...