Bud­get gets prop­erty tick

Whitsunday Times - - REAL ESTATE -

YOUNG ten­ants and se­nior home own­ers in the Whit­sun­days won out in the Fed­eral Bud­get handed down this month.

This is the view of LJ Hooker Whit­sun­day prin­ci­pal Jess Hunter who said home own­ers over the age of 65 look­ing to sell would have an eas­ier time tran­si­tion­ing to “lower-main­te­nance liv­ing”.

From July 2018, home own­ers over the age of 65 who have owned a home for more than 10 years will be able to make a non-con­ces­sional con­tri­bu­tion of up to $300,000 into their su­per­an­nu­a­tion from sell­ing their home.

Ms Hunter said it was im­por­tant to make it eas­ier for older res­i­dents to sell, with LJ Hooker re­search show­ing that 38.3% of home own­ers over 55 lived with two spare bed­rooms while 18.6% had three or more rooms which were un­der­used

“This in­cen­tive is great news for Whit­sun­day se­niors who want to re­alise cap­i­tal growth and lessen the im­pact on their su­per­an­nu­a­tion from sell­ing,” Ms Hunter said.

“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 home-own­ers de­cide to sell.”

Ms Hunter also praised the op­por­tu­nity for first home buy­ers to make up to $30,000 in con­tri­bu­tions in su­per­an­nu­a­tion at a lower tax rate which can be with­drawn for a hous­ing de­posit.

PRD­na­tion­wide Whit­sun­day prin­ci­pal Christie Leet wel­comed the an­nounced in­crease of the Cap­i­tal Gains Tax thresh­old to 60%.

“It will make peo­ple more in­clined to sell and put a hold on prices. If you are a first home buyer in Syd­ney you come to the con­clu­sion you will never buy your own prop­erty,” he said.

“Some of those peo­ple will cer­tainly choose to re-cen­tralise and we (in the Whit­sun­days) are well placed for that to hap­pen.”

Whit­sun­day Ray White prin­ci­pal Mark Beale wel­comed the govern­ment’s com­mit­ment to neg­a­tive gear­ing.

“Neg­a­tive gear­ing is an im­por­tant part of the Aus­tralian life­style these days where mum and dad in­vestors can in­crease their wealth and have a tax de­duc­tion along the way,” he said.

Neg­a­tive gear­ing is an im­por­tant part of the Aus­tralian life­style these days where mum and dad in­vestors can in­crease their wealth and have a tax de­duc­tion along the way. Mark Beale

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