Budget gets property tick
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for first home buyers to make up to $30,000 in contributions in superannuation at a lower tax rate which can be withdrawn for a housing deposit.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