TAX incentives including stamp duty exemption and quarantining the proceeds of the sale of the family home in the age pension assets test would help remove some of the barriers to downsizing for older people.
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National Seniors research shows while some seniors would like to or need to downsize, the lack of appropriate housing stock and high costs are discouraging.
“Stamp duty, capital gains tax and pension impacts are key deterrents to downsizing,” National Seniors chief executive Michael O’Neill said.
“The report finds that although many retirees are content with staying in their existing homes, a significant number want to move to something smaller but are worried about the financial implications and also the lack of affordable and appropriate alternatives in the current housing stock.
“It is also important to remember that older people are not a homogeneous group and there are many who want to stay where they’ve always lived and shouldn’t be pressured to move.”
Mr O’Neill said downsizing needed to be simpler and new options offered for older people. “Seniors are interested in innovative housing concepts and keen to embrace them, but availability and affordability is an issue,” he said.
“And while the traditional retirement village concept remains appealing to some, our research finds there is an aversion to this type of living.”
He said seniors preferred to live in low maintenance homes close to transport and amenities in medium to high density surroundings, and wanted to remain part of the community.
