Stamp duty can be a major deterrence for over 50s looking to downsize, however many are not aware of the options available to avoid this added cost.
A number of industry and consumer bodies have advocated for seniors concessions on stamp duty, highlighting this as a barrier for over 50s looking to unlock the equity in their home and downsize, along with other key obstacles such as a lack of affordable age-appropriate housing.
Currently, downsizers living in Queensland looking to find a more modest home of about $500,000 would be faced with paying an estimated $8,750 in stamp duty.
Over 50s finance expert and author, Rachel Lane, said stamp duty has played a prominent role in tax reform debates as it can be a major inhibitor of mobility for people seeking to move homes.
“It is well-documented that this is a particular issue affecting asset-rich, cash-poor seniors, who are subsequently staying in a large family home to avoid paying thousands of dollars in stamp duty in order to downsize.
“Many people do not realise an alternative housing solution exists to provide downsizers with ways to access their home equity while negating the need to pay stamp duty fees.
“For example, Ingenia Lifestyle’s land lease ownership model is unique in that buyers purchase a new home and lease, rather than own, the land which eliminates the need to pay stamp duty.
“This also ensures a much more affordable entry price point and means new residents are often able to free up a substantial amount of equity raised in the sale of their previous home and have more funds to enjoy their golden years,” Rachel said.
Ingenia Lifestyle Chambers Pines has brand new homes selling now from $199,000, with one bedroom plus study, one bathroom and one car, offering a real opportunity for over 50s to unlock the existing equity in their old family home and downsize into a brand new one.
“It’s also a welcome relief for over 50s looking to downsize without having to pay stamp duty costs,” Rachel said.
To view our the display homes at our award winning community, call the Chambers Pines team on 07 3445 4367 or for more information visit liveinlogan.com.au
