Author and senior finance expert Rachel Lane has spoken publicly recently about how older homeowners have the opportunity to boost their cash reserves by downsizing their home, as a seller’s market emerges amidst rising median house prices across Australia.
The Australian Bureau of Statistics’ latest residential property price index revealed median house prices rose across most capital cities in the 12 months to June of this year, with the most growth being experienced in Melbourne and Sydney (13.8%), and Brisbane following behind at 3% growth.
“I would urge seniors to pay close attention to median house prices in their area and affordable housing price points like these to get a better sense of the type of cash reserves they might be able to access,” says Ms Lane.
With this prospect being put forward to the ‘asset-rich, cash-poor’ class, Lane recommends that senior families take advantage of the most attractive home ownership opportunities available within retirement villages.
“Lifestyle-focused land lease communities, for example, are one of the newest types of affordable housing catering to the over 50s market,” added Ms Lane.
“While the homes on offer are of an increasingly high quality, the entry price point is kept low since residents lease, rather than own the land, with low weekly fees. This pricing model eliminates the need to pay stamp duty, entry and exit fees and in some cases, the resident is then eligible for rent assistance.”
Ingenia Lifestyle Chambers Pines Project Sales Manager Lynda Ruddell said the unique land lease model is drawing more interest thanks to the flexible benefits that allow downsizers to pursue a financially stable lifestyle based on independence, health and wellbeing.
“The innovative design of the new homes allows buyers to reap the financial benefits of the land lease model, meaning residents retain their eligibility for government rental assistance on the weekly site fees,” Ms Ruddell said.
“Our home designs are of an increasingly high quality while providing residents with more capital to fund their senior years,” added Ingenia Lifestyle Lara Regional Sales Manager, Zoe Ilich-Paul.
Ingenia Lifestyle communities have a range of well-priced designer homes, often consisting of a one bedroom floor plan with open plan living and dining, and an array of sophisticated features including covered decking, front landscaping, European stainless steel kitchen appliances and split system air conditioning.
