Retirees Hold Answer To Housing Supply Woes
October 26, 2010 Leave a comment
Why not consider giving older Australians and retirees a bit of a reward for all their hard work and contributions to this great nation by letting them off the hook with stamp duty.
That may serve as an incentive for them to let go of their homes and downsize, so that new stocks would come on the market for new home buyers.
A recent survey showed that if just 20 per cent of baby boomers were to downsize into smaller accommodation, the vexing housing supply problem would be solved.
Statistics show that over 55 year olds make up 25 per cent of Australia’s population – that’s 5.6 million people. Over 65 year olds make up a further 13 per cent – 2.9 million people. The over 65 component will grow to 19 per cent by 2021 and when you add the figures together it’s not hard to see that the problem, with immigration thrown into the mix, is getting worse.
At current rates, it’s possible close to 20 per cent of Australia’s larger housing stock will be inaccessible to first home buyers, young families or investors.
