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This is why you shouldn’t sell your house until July

By Reporter · June 07 2018
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Invest

This is why you shouldn’t sell your house until July

By Reporter
June 07 2018
Reading:
egg
egg
egg
Sell your property, property market, property investment

This is why you shouldn’t sell your house until July

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By Reporter · June 07 2018
Reading:
egg
egg
egg
Sell your property, property market, property investment

Aussie retirees with modest super sums and valuable properties have the most to gain from downsizing their property, provided they hold off until this moment.

According to the director of Boutique Property Agents, Tolga Ozer, retirees who wait until 1 July stand to gain the most from selling their home.

That’s because from that date, retired Australians 65 and over will be able to funnel up to $300,000 from the sale of their primary residence into their super without any added effects to balance caps or contribution rules.

Mr Ozer said this means retirees with low super can build up their super without losing a significant part of their pension.

He said that with taper rates arriving at about $78 per $1,000 a year, a return investment of 7.8 per cent will leave retirees in the “best position”, thus justifying the choice.

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“When looking at downsizing your property it is important that you do your research in understanding which category your financial status falls under,” Mr Ozer said.

“There are three groups of retirees that will benefit the most from this new scheme.”

He explained that the first group are those with a low super balance and a valuable home.

“If a couple only has a super balance of $100,000, by investing $300,000 into their funds they will see a return of an extra $16,722 per year, which pushes their overall income to $58,232, Mr Ozer said.

Then there are those who can take advantage of the couple’s cap of $600,000.

“With this being the maximum amount couples are able to invest under the new scheme, by doubling the investment this will defray the pension loss, Mr Ozer said.

Finally, he said retirees who have put too much into non-home assets and aren’t eligible for the pension are the third winners, “even if their super funds have more than the transfer balance limit of $1.6 million”.

This is why you shouldn’t sell your house until July
Sell your property, property market, property investment
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