2017 Budget – Downsize to a better lifestyle
With an ageing population, it’s no surprise that the government made an announcement in the latest budget to “assist” retirees to downsize.
From July 2018, the government is offering retirees the opportunity to put up to $300,000 from the sale of their “existing large family home” into their current super fund. This presumably is to assist “asset rich, cash poor” retirees by allowing them to access their money tied up in their Principal Place of Residence (PPR) and allowing them to put it into a lower taxed savings plan which in turn enables retirees to live a higher cash style lifestyle.
So, why is the government doing this?
This all sounds great, until you realise that they haven’t changed any rules with regards to pension “Asset Testing.” The more cash you have, the less the government is then required to pay you.
Downsizing not only benefits retirees by giving them a minimal maintenance lifestyle, it similarly assists the Government by minimising the pension payments required.
At EPA, we highly recommend downsizing but NOT for the governments benefit. We at Essential Property Advice believe that downsizing should be about gaining a better lifestyle by downsizing the size of the property, not the wealth of the property!
We recommend ditching the difficult, hard to do and boring jobs required to maintain a large home, for a low maintenance easy lifestyle property and more time to do the things you love.
If you are ready to live a better lifestyle, give Essential Property Advice a call. We will help you sell and buy your way to an exciting new life. As the youngies say “YOLO” (You only live once).