Having tax incentives for retirees to downsize will help fix the housing supply shortage, according to the Real Estate Institute of New South Wales (REINSW).
The institute has been lobbying government to introduce a stamp duty concession for downsizers with president Malcolm Gunning saying it will assist in increasing the number of larger properties available.
“We believe in supporting older Australians on the purchase of a smaller house on the basis that it frees up large homes that are being under-utilised,” Mr Gunning said.
“As part of our Real Tax Policy we recognise that NSW should broaden the senior citizen's transfer stamp duty exemption by lowering the minimum age to 55 years and removing the 'new home' restriction and the purchase price cap.”
Mr Gunning noted that the move will help stimulate better use of existing infrastructure.
“Many large houses are occupied by empty nesters,” he said.
“There should be incentives to encourage them to sell and buy more appropriate housing.
“This measure should also increase supply of larger homes in established suburbs, improve affordability and stimulate better use of existing infrastructure.”
Going forward, Mr Gunning said he is pleased to see that this is something that will be put in the limelight over this month.
“We are pleased by reports that retirees have been put on the agenda for December talks between Federal Treasurer Scott Morrison and state and territory treasury ministers,” he concluded.
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