Federal budget 2017/2018 to offer market confidence

Federal budget 2017/2018 to offer market confidence

By Jacqueline Latimer on May 11 2017

LJ Hooker Southport Principal Alex McCormack has welcomed this month’s Federal Budget, saying it offered enticements for everyone in the Gold Coast 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 and 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 seniors who want to realise capital growth and lessen the impact on their superannuation from selling,” Alex 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 homeowners decide to sell.”

Alex said the opportunity for First Home Buyers to place $30,000 in voluntary superannuation contributions at a lower tax rate to use for a home deposit, was good news as well.

“The scheme could work particularly well locally, when combined with the incentive for downsizing; more family homes could come onto 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 the upkeep of their investment properties enabling landlords to position their properties at a competitive tenancy price point, making renting more sustainable and increasing supply,” he said.