Good – and potentially bad – news for retirement living operators.
The Property Council of Australia has estimated the Government’s $25,000 cash grants under its new HomeBuilder program could result in an additional 1,000 new retirement village and land lease sales between June and December, increasing the total number of sales from 1,300 to 2,300.
As we covered here in The Source yesterday, the Chair of the Residential Land Lease Alliance, and founder and Managing Director of Lifestyle Communities, James Kelly, had welcomed the grants, saying they would not only stimulate new housing sales, but will free up equity for older Australians to otherwise spend through the economy.
However, the Fin Review is reporting there is still a risk that the grants may not apply to retirees.
A spokesperson for the Federal Government said the eligibility of these purchases, which have a different ownership structure from standard home deals, was subject to individual interpretation by State governments, with state revenue offices overseeing the program.
How home purchases by downsizers would be regarded under HomeBuilder is still under negotiation as part of the national partnership agreements, they added.
Watch this space then.