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Stamp duty incentives should be offered to retirees

By Louise Morrin

Moving into new real estate in St George should be made easier for people once they reach retirement age, and tax incentives could be just the way to make it happen. This is according to the Real Estate Institute of New South Wales (REINSW), which suggested that stamp duty rates should be made more favourable for retirees.

The group argues that people are being discouraged to sell their family homes because of the high payments they’re likely to face. This could ultimately have a debilitating effect on the property market and economy as a whole.

REINSW president John Cunningham noted: “The decision not to sell has an adverse effect not only on the retiree but also on other property consumers who could and would make better use of the retiree’s property.

“This supply blockage distorts construction strategies and puts unnecessary pressure on infrastructure.”

Cut stamp duty by 50 per cent

As a result, REINSW believes that current stamp duty rates should be cut in half to encourage greater mobility among retirees. This should be applicable on properties up to the value of $1million to give this group even more of an incentive to move to rural areas.

However, it may turn out that it takes longer for Australians to reach retirement age than ever before. The Australian Bureau of Statistics (ABS) found that in 2014-15, 71 per cent of people intended to retire at least by the age of 65 – this was up from 66 per cent just two years earlier.

Further data shows that 23 per cent of people aged 45 and above are hoping to retire at the age of 70, up from 8 per cent in 2004-05.

If you’re looking to move to new real estate in St George for retirement, make sure you speak to the Ray White Carlton team.

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