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Planning and design laws, not financial issues, the main barriers to downsizing

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Your Investment Property | 03 Dec 2015, 03:40 AM Agree 0
Downsizing may be one way to address housing affordability and supply issues, however it's likely to take more than financial incentives to get people to sell the family home
  • Paul | 03 Dec 2015, 06:52 AM Agree 0
    Re Mary Wood's comments about increasing retirement villages numbers. There are a couple of problems.
    1) Purchasers will need to have cash reserves when entering as monthly fees eat too much into retirement savings/pension income.
    2) Maintenance fees often go up at the same time as pension increases
    3) Deferred management fees make a purchase decision unsuitable on a financial basis
    4) The Productivity Commission supports Equity Release from the occupied home, but retirement villages are leasehold tiles and cannot be borrowed against

    Paul
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