Seniors Win from 2013-2014 Federal Budget

By Janet Spencer

Seniors Win from 2013-2014 Federal Budget

They will soon be able to sell their home and keep $200,000 without affecting their pension.  The Treasurer has provided a direct incentive for seniors to downsize. In a planned trial programn scheduled to start running from July 1st 2014 for ten years, $112 million will be allocated to seniors in the form of a means test exemption on their pensions of up to $200,000 if they sell the family home. Seniors will be required to have lived in the house for least 25 years and deposit the funds from the sale in a deposit account. This may help up to 30,000 pensioners avoid any potential reduction in their pension eligibility.

There wasn’t a huge amount of pain or gain for home owners, home buyers and property investors in the Federal Budget handed down by Wayne Swan last week, however the team at Buyer Solutions view this initiative as positive.

However, we think this is a smart move and will prove to be a helpful stimulus to the property market. There are hundreds and hundreds of large family homes that remain unsold because their owners are reluctant to sell for fear of their pension being affected.  On the other side there is huge demand for family homes across Melbourne and Australia. This incentive should help address this imbalance in the market and at the same time help seniors downsize and move into homes that are more suitable to their needs.2 million will be allocated to seniors in the form of a means test exemption on their pensions of up to $200,000 if they sell the family home.  Seniors will be required to have lived   in the house for least 25 years and deposit the funds from the sale in a deposit account. This may help up to 30,000 pensioners avoid any potential reduction in their pension eligibility.

Buyer Solutions property consultants can help you to downsize.  We do this regularly without stress or fuss.

For up to date information on what’s happening in real estate in Melbourne, contact Janet at  jspencer@buyersolutions.com.au or 0418 101 146.

By Janet Spencer

Buying property, Housing Affordability, Housing Market, Real Estate News & Opinion, State of the market

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