A pilot scheme was announced in the Budget where senior home buyers can deposit up to $200,000 for ten years on a smaller property without facing an impact on their pension.
Those that are eligible for the scheme will have lived in their current property for 25 years and will have to put at least 80 per cent of the excess money they gain from selling their property into a special account so that it is not subject to pension income.
REIA president, Peter Bushby, said: "The initiative should lead to better utilisation of existing housing stock."
In Australia there has been a trend noted for older people to move out of their family home to smaller properties after their children have left. So larger houses could be freed up for new buyers under this scheme.
Posted by Steve Douglas