Thinking of downsizing?

If you’ve been thinking about downsizing and potentially moving to an over 50s living community, then there was good news in the most recent federal budget.

With such high market demand for homes throughout Australia and consistently low stock levels available, prices continue to rise. This means more and more families and individuals are finding it increasingly difficult to enter the housing market. 

To counteract this, Treasurer Josh Frydenberg announced a number of changes in the 2021 federal budget to try and address housing affordability, while also allowing increased flexibility for older Australians. 

As part of the changes, eligible people, including self-funded retirees, will have greater flexibility to contribute to their superannuation and access their housing wealth if they choose to through a range of measures. One of these measures is increasing access to downsizer contributions.

The downsizer contribution allows eligible people to make a contribution of up to $300,000 from the proceeds of selling their home, or up to $600,000 for couples, towards their superannuation. The downsizer contribution is not a non-concessional contribution and does not count towards the contributions caps. 

Previously you had to be 65 years old or older, as well as met further requirements, to be eligible for the downsizer contribution. From July 1, 2022, the minimum age will be lowered to 60, allowing more Australians nearing retirement to make a one-off post-tax contribution when they choose to downsize and sell their family home. Downsizer contributions can be made after the sale of a person’s principal place of residence, held for a minimum of 10 years. To find out more about the federal budget 2021-2022 and see if you might be eligible for access to Downsizer Contributions, visit budget.gov.au. 

These changes will improve the flexibility for Australians to contribute to their superannuation savings, and may encourage older Australians into downsizing sooner and instead look for over 50s homes for sale, which will increase the supply of family homes on the market. 

Downsizing to an over 50s living community is not only often a more affordable living option, but can come with a raft of benefits, like convenient modern facilities, low-maintenance homes, a built-in friendly community and activities, and support.

Thinking about downsizing? If you are searching for over 50s homes for sale or over 50s living options, click here to explore the brand new range of AVA Communities developments and see what your new lifestyle could look like.