Downsizers a market driver for Bundaberg
THE Bundaberg property market could benefit from Federal Government legislation designed to encourage retirees and pre-retirees to downsize the family home.
Felicity Moore, from the Real Estate Institute of Queensland, said the move was designed to free up housing supply for younger families ready to move into the next stage of life and a bigger home.
From July 1 this year Australians aged 65 years and older will be able to make a non-concessional (after tax) contribution into their super account of up to $300,000 from the sale of their family home if they have owned the property for at least 10 years.
The property must be the principal place of residence and be eligible for the main residence exemption for capital gains tax.
Couples will be able to contribute up to $300,000 each, giving a total contribution per couple of up to $600,000.
The move could see cashed-up southern retirees move to more affordable areas like Bargara.
Ms Moore said Bundaberg house sales had shown good growth over the latter part of 2017, with the annual median house price growing 2.9 per cent in the 12 months to September, to $283,000.
"With a significant latent downsizer market here, this region should benefit from the financial encouragement to sell and move into a smaller home,” Ms Moore said.
"By making more supply available, the government is keeping a lid on affordability issues elsewhere in the country and minimising upward pressure on prices,” she said.
Bundaberg's apartment market had a great September quarter, growing 5.1 per cent to land at a quarterly median unit price of $254,950.
Ms Moore said it was possible apartments would attract additional demand due to the Federal Government's initiative, "particularly if those downsizers bought a great little unit to retire to in this beautiful part of the world”.