Retirees who want to downsize their home should be given whatever support and assistance they need, the Property Council of Australia has urged. Executive director of retirement living Mary Wood explained that unlocking equity could be crucial to the longevity of the housing market.
"Older Australians need access to all retirement living options, and the penalty on downsizing should be removed for all pensioners, not just those who buy annuities," she commented.
Ms Wood explained that many older people find themselves with a disincentive to move into a smaller property, despite the advantages this can bring to the wider market. If retirees relocate, it means there's a wider pool of larger homes available to first-time buyers.
The Property Council of Australia suggests this problem can be minimised by exempting up to $200,000 of home sale proceeds. Pensioners should still be means tested, but only if they meet certain criteria.
This could lead to a change in demographics among those who go in search of real estate in Eaton. There's also potential for larger properties to become available to those who haven't yet made their first steps onto the ladder.
Lending data is particularly strong at the moment, which suggests now is a good time to think about entering the property market. Owner occupiers are making their mark, as lending to investors takes a back seat.
The Real Estate Institute of Australia revealed that September data showed a 0.7 per cent rise in owner-occupier finance commitments. There was also a 1.9 per cent fall in the value of investment housing commitments from the previous month.
No matter whether you're an owner-occupier or investor, speak to the team at Ray White Bunbury. We can help you find real estate in Eaton that meets your individual requirements.