In either case, make sure you’re not missing out on the benefits of new legislation which aims to improve housing affordability by encouraging downsizers to sell the big old family home, and to make it easier for first timers to save a deposit.
This recent AMP blog summarises what you need to know.
From 1 July 2018 people aged over 65 will be able to make an after-tax contribution to their superannuation of up to $300,000 using the proceeds of sale from their main residence. For couples, this means you can contribute up to $600,000.
This is a significant departure from the current rules which mean people aged 65 to 75 must satisfy a ‘work test’ to make voluntary contributions while people over 75 generally can’t contribute to their super.
The change aims to free up the supply of established houses to improve affordability.
First timers should also brush up on their superannuation knowledge to turbo charge their deposit.
Under the First Home Super Saver Scheme (FHSSS), first home buyers who make voluntary contributions of up to $15,000 per year into their super can withdraw these amounts, plus associated earnings, to help with a deposit on their first home.
There are rules and procedures that apply so check out the Australian Tax Office for more information.
Whether you’re looking to get on the first rung of the property ladder, or step off it, it’s useful to get some independent financial advice to understand how these rules can work best for you.