‘Improved assistance’ for seniors seeking home loans

The Real Estate Institute of Victoria (REIV) has praised the “improved and increased assistance” for seniors looking to buy a property in the state.

According to the organisation, there are a number of obvious benefits to “removing artificial barriers to downsizing” – including stamp duty.

The REIV asserted that stamp duty can act as an artificial barrier to moving – for example, if you are looking to move into a smaller property, you could face costs of up to $30,000 on an average home.

This can make things particularly difficult for older buyers who may be retired and living on a fixed income – a group which is also likely to be interested in downsizing as their adult children have flown the nest.

Under new laws set to take effect on July 1st, the current duty relief threshold is set to rise from $440,000 to $750,000, which would see qualifying individuals receive a partial exemption from the levy.

Furthermore, some eligible seniors will be able to qualify for a total exemption if the value if their home is less than $330,000.

Commonwealth Seniors Card holders will also be eligible for the discounted rate.

Earlier this week, the REIV asserted that first-time buyers looking for a new home loan may already benefit from a stamp duty reduction, as this is paid on the date the property purchase is settled.

If settlement occurs after July 1st, buyers will be entitled to the new rate.