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Cash out, move on: Network calls incentives for downsizers
Real estate network Raine & Horne has called for a CGT holiday and stamp duty relief to push older Australians to sell in a bid to unlock stock and free the market for younger buyers.
Raine & Horne has called for targeted incentives for Australians to put their properties on the market as stock shortages persist, while data showed owners are reluctant to sell.
The network has urged the government to consider a capital gains tax holiday for older investors and to provide stamp duty relief for senior home buyers, as housing prices rise.
Cotality reported that dwelling values rose 0.7 per cent month on month in August, with capital city prices up 0.8 per cent, driven by Reserve Bank rate cuts, rising real wages, stronger consumer confidence, and a continued housing shortage.
Additionally, the government’s expansion of the 5 per cent first home buyer deposit scheme from October will also boost buyer confidence.
However, despite the market benefiting vendors, Raine & Horne’s latest figures show that property owners are hesitant to sell as they head into the traditional spring selling market.
The data showed appraisals are 15 per cent year on year, while listings are 9 per cent lower year on year.
Angus Raine, executive chairman at Raine & Horne, said the government should consider a capital gains tax (CGT) holiday for older investors and stamp duty relief for “last-home buyers”.
The CGT holiday for older investors would introduce a time-limited CGT exemption for older investors who sell, freeing up housing supply.
Meanwhile, the seniors’ home buyer stamp duty relief would provide concessions for empty-nesters who are selling their principal place of residence and are downsizing.
Raine said this would instil confidence in property owners to sell, putting more stock back into the market for younger buyers and growing families in particular.
“Empty-nesters need compelling reasons to move – whether that’s freeing up equity to enjoy retirement, relocating closer to family, or downsizing to a low-maintenance home,” Raine said.
He said the right incentives would encourage sellers to act, helping the next generation of Australians get their foot into the market.
“These measures would deliver a win-win, giving older Australians the financial confidence to sell while unlocking much-needed housing supply for first-time buyers and upgraders,” he said.