Australians who are renting even in retirement are facing more financial stress than those who own their homes, a new paper from the Swineburne University has revealed. Furthermore, those who still do not own a home in their late 40s are also less likely to get one later on.
Around 426,000 Australians aged 50 and above are living alone or with a partner in private rentals, but it is predicted that this would balloon to more than 800,000 by 2050.
“That will put a lot of pressure on the pension system and even more pressure on the rental market, which does not cater to older people on low incomes as it is,” said Adrian Pisarski, executive officer of National Shelter.
As a result, the study’s authors called for the axing of capital gains tax concession and the reinstatement of death duties in order to reduce the widening wealth gap between homeowners and non-homeowners.
“Housing is probably the key way of generating wealth, but people who are unable to purchase or fall out of home ownership will find that they don’t have as much wealth in retirement,” said research author Andrea Sharam.
However, Victorian Property Council executive director Sally Capp said that removing capital gains concession would only result in less investment in residential property construction.
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