What the downsizer super contributions mean for the property market
Two months since the downsizer superannuation contribution took effect, excitement is high amongst those looking to make the move this spring.
The incentive, announced as part of the 2017/18 Federal Budget and which came into effect from July 1, enables those aged 65+ to invest up to $300,000 from the sale of their family home into their superannuation.
So, what does this mean for the market?
It’s good news for house hunters, as the incentive is designed to free up family homes in the city’s blue-chip suburbs. But you’ll need to be ready to buy when these homes do hit the market. Demand is strong for 2+ bedroom homes in lucrative areas such as Balwyn and Yarraville from investors and owner occupiers alike.
If you’re preparing to sell, consider what updates you can make to your home to appeal to the downsizer market before it hits the market. Single storey, low maintenance homes with open-plan spaces are high on their list. Adding extra storage space and spending a bit of extra time on the garden can also go a long way.
If you’re a downsizer yourself, speak to a local agent who can advise you on how to make the most of your family home, guide you through the sales process, and assist you in finding a property that fits your needs.