NO WINNERS IN DOWNSIZING PLAN
IT was mentioned on the news that there are many elderly people living in large, mainly empty homes who would love to downsize but are afraid to do so.
The reason given would be that the money derived from the sale of their property would no longer entitle them to their full pension.
This would make them worse off financially.
The gentleman in question proposed a scheme which would correct the situation, thus enabling the pensioner to avoid losing a portion of the pension and at the same time freeing hundreds and even thousands of family homes to young families who need them.
I am personally rather uneasy about this type of approach.
From what one hears, young families seem to find it almost impossible to save an adequate amount of money for a deposit on a reasonably sized home.
And even if some do have the capacity to do so, it doesn’t take long for some greedy property investor with a large sum of ready cash to step in at an auction and to override the aspiring young family by snatching the home away without any qualms.
Furthermore, I am very suspicious of the idea that freeing beautiful family homes from pensioners for whatever reason will solve the problem for young Australians in the impossible current property climate.
I may be wrong, but I am convinced that by persuading the hapless pensioner that “it is in his or her interest to downsize” for the benefit of the younger generation’s accommodation needs, neither party will have a home in the end.
Too many outsiders and people with money will take advantage of both the younger buyer and older seller. ROSA DOUGHTY-LARSEN, Riverton.