At Goodwin we call it ‘right-sizing’ because our apartments go up to three bedrooms and our floor plans are larger than average.
For many people who have long been empty-nesters, the old family nest can start to feel cavernous, even lonely. An older home and yard may need large scale maintenance or renovations, and unexpected maintenance costs become more likely. They’re also less adaptable to changing needs over time.
Right-sizing to a new, purpose-built apartment offers a home large enough for your chosen lifestyle and that’s reliable, easily manageable and future-proofed – and at a Goodwin village we do the home maintenance for you!
Also, particularly when downsizing from a large home in an established suburb, there’s opportunity to buy at a lower price than you sell. Now, some of that surplus can be contributed to boost your superannuation. Here’s how.
The federal Government scheme provides an opportunity for seniors to make tax free contributions to their personal superannuation fund from the proceeds of a family property. A benefit of investing into superannuation is the lower tax rate of 15%, or tax-exemption for a retirement income stream.
This measure is part of a package of reforms to reduce pressure on housing affordability by encouraging eligible retirees to sell their larger homes by allowing them to invest the proceeds into their superannuation. The Australian Government claims the initiative will encourage some people to downsize into housing that is more suitable to their needs, freeing up larger family homes.
The contribution will be exempt from the existing age and work tests for people over 65 years, reducing the barriers which restrict people from making a voluntary contribution. Currently, a person aged 65–74 must have worked a minimum of 50 hours over 30 consecutive days in a financial year to be allowed to make a voluntary contribution limited at $100,000. People aged 75 and over who are not currently allowed to add to their superannuation will be able to do so under the downsizing contribution scheme regardless of employment.
Overview of the scheme:
At Goodwin, we set our retirement village apartment prices at 80-90% of the median house price of the suburb. This pricing strategy is to ensure that majority of people can sell their family home to move into a Goodwin village with surplus capital. With the new scheme in place, up to $300,000 of that capital can be used to top up superannuation balances.
For more information on the downsizer superannuation scheme visit the Australian Taxation Office website or speak to a financial planner:
Ask Goodwin for current listings and prices, at firstname.lastname@example.org or 02 6175 5057 (Crace and Ainslie villages) or 02 6175 5045 (Farrer and Monash villages).