NSW stamp duty concessions for seniors.

Seniors Housing Online, Australia’s leading retirement living website welcomes the NSW Government’s introduction of stamp duty concessions for downsizing seniors, although the impact is limited as many seniors aged 65 and over choose established properties rather than new builds, or want to move to retirement villages or other age specific housing where stamp duty is not applicable in any case.

If the NSW Government is serious about creating effective incentives to free up existing housing stock then this concession needs to be extended to existing housing as well as new builds, the age threshold should be reduced to 55, and consideration given to making age specific accommodation such as retirement villages more financially attractive where property stamp duty does not apply.

There are more than 20,000 seniors a month searching the website www.seniorshousingonline.com.au for retirement accommodation to buy or rent – 12% are looking for a luxury apartment or villa; 26% are looking for a new villa in a village setting and 28% are specifically looking for a retirement village unit.

‘Over 55’ developments differ from other residential properties as they are structured with a variety of legal title arrangements with many offering a type of long term leasehold interest rather than freehold or strata title ownership. So the stamp duty payable on the purchase of a residential house will in many cases not apply to a retirement property.

The benefits of downsizing to age specific housing include the security of knowing support services are available in the future should they be needed, as well as providing a resort-style environment, a sense of community and security and freedom from household chores and property maintenance.

Seniors Housing Online website visitor surveys show seniors are overwhelmingly looking for independent living, with 75% saying this is essential and 21% saying it is desirable. 80% want a village setting; 67% a clubhouse or recreation centre; 59% a swimming pool and 49% a gym. But at the same time, 50% say two or more bedrooms is essential and a further 35% say it is desirable; 88% still want garages and parking spaces; and 58% want pet-friendly accommodation.

The reality is that while people want to downsize the mortgage or access their equity in the family home, they don’t actually want to downsize their lifestyle in retirement. People are prepared to move away from family and friends to achieve a better lifestyle at a price point they can afford, with 43% saying remaining in the same area doesn’t matter; 35% saying it is desirable and only 22% considering it essential.

These are the factors influencing housing choices which must be taken into account if we want to encourage seniors to free up their larger family homes and make more housing stock available.