The recently released Federal Budget 2017 has introduced a downsizing incentive to the value of $300,000 for retirees in an effort to boost the stock of medium to large sized homes on the market. This new incentive features some positive implications for real estate in Belconnen.
The downsizing incentive is in place for homeowners aged 65 years and over who have lived in their home for at least a decade. Eligible parties choosing to sell their properties will be able to make a non-concessional contribution of up to $300,000 to their super fund.
As a non-concessional contribution, whatever allocation downsizers opt to invest will not be taxed, meaning the full amount will be added to your superannuation total. The $300,000 limit is per person, which is great news for couples as it will allow $600,000 worth of contributions from a single household.
Further, the incentive is exempt from the $1.6million cap for non-concessional superannuation additions and, as such, won't be a spanner in the works for existing super contribution plans.
In the current market, many older homeowners have expressed concern about the costs involved in downsizing. The new incentive is relieving many of the financial pressures of moving into a more suitable and easily manageable home.
Many real estate commentators have, in the last few years, pointed to a general lack of housing available in areas with higher population densities. This has led some buyers to foster an attitude of "now or never" as far as investing is concerned.
Fear not: As retirees take up the scheme and move into smaller-sized dwellings, the amount of medium to large sized properties on the market will increase considerably. Whether you're in the market for a decent sized rental property or that idyllic family home, you're options for Belconnen real estate are about to become far more extensive.
The "now or never" mentality will certainly fall by the wayside in the next calendar year as we see the Federal Budget's property schemes and incentives begin to make their impact on the market.
If this is the kind of real estate you're looking to move your family into or add to your investment portfolio, contact our expert team at Ray White Belconnen today.