Grey nomads or wannabe grey nomads seeking to downsize in order to realise some of their assets have been given some encouragement in the Federal Budget.
Under the plan, the Government will extend the exemption of home sale proceeds from pension-asset testing from 12 months to 24 months, which will give pensioners more time to purchase, build or renovate a new home before their pension is affected.
The Government will also expand access to downsizer superannuation contributions for people aged 55 to 59. The downsizer contribution will allow people to make a one-off post-tax contribution to their superannuation of up to $300,000 per person from the proceeds of selling their home.
Will more grey nomads be rushing to sell the family home?
The Retirement Living Council (RLC) has welcomed the plan to reduce the adverse financial impacts for pensioners looking to right-size, describing it as the ‘right move at the right time’.
RLC Executive Director Daniel Gannon said the policy changes would help cash-strapped senior Australians and create additional housing supply capacity for young families.
“Removing dis-incentives for older Australians to ‘down-size’ into age-friendly communities is a ‘win’ for older homeowners, government health and aged care budgets, and for younger Australians looking for family-sized houses in established neighbourhoods,” Mr Gannon said. “This is a win-win for seniors and the nation’s housing market, which is currently under great duress.”
Older households have high home ownership and equity. The Treasury has preciously observed that many current retirees spent the majority of their working life without compulsory superannuation. As a result, despite having significant housing wealth, many home-owning retirees have little voluntary savings or superannuation when they retire.
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We live in the country , if we do the sums with realestate fees and stamp duty we would be no better off and living in a less quality home. NO not at this time.
Since the age cut off is 55 to 59 it hardly helps someone in their mid 60s that would likely be the age group considering downsizing before the pension age of 67 in most cases. Wake up governments and get rid of stamp duty for older people downsizing as long as their new house is less value that their old one and they put the difference in superannuation.
Sell our house for the $1.5 million that its worth, buy a smaller house for $800,000, put $300,000 in each of our super accounts & then both lose our part government pension.
No thanks.
Except for extra fuel caravaning & free camping is no more expensive than staying at home.
In fact the fuel cost is partly offset by smaller utility bills back home because we’re not using power, gas or water.
Not likely.
The stamp duty alone is a complete turn off to move, never mind the moving costs.
Plus I have a well equipped workshop at home that downsizing would mean losing that facility which occupies much of my time when I am not off caravanning.
I have no desire to go into a lifestyle village either, anytime soon.
Yes. As a solo traveller it’s been getting too hard to travel & maintain my home as well. I’ve been thinking about selling for a couple of years because everything is now too hard – house & garden way too big for me. Also I was a bit worried I wouldn’t be able to find a place within the 12mths period. I got some really good appraisals early this year but I procrastinated & now the market has dropped, so has my house value & there’s nothing left in the village I was planning on moving into. Don’t want to look elsewhere because this one has an RV storage area, a dog friendly section, no stamp duty & no entry or exit fees, so you just sell your house as normal when you move out.