Instead of an 8% reverse mortgage from a bank. Here's one from the gov…
3.95% Reverse Mortgage From Services Australia
ilove on 28/10/2025 - 23:13
Last edited 29/10/2025 - 09:33 by 1 other user
Last edited 29/10/2025 - 09:33 by 1 other user
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It's like they've tried nothing and instead they're like here's a turd sandwich, enjoy.
So these are the ones that have benefitted from insane levels or house growth as well as share market/super growth and they get to draw down at tiny rates…
No wonder they're not moving out of the 4 by 2's
Payment is capped at 150% of the age pension if that matters?
This scheme should be mandatory, such a rort that someone living in a paid-off $2,000,000 house is eligible for government handouts.
Every dollar from the aged pension should be a loan, repaid from the estate with first dibs, I'm sick of my tax dollars basically subsidising inheritances.
How is it a handout? It is above the reserve banks 3.6% cash rate, and there is no risk of default.
If you want incentives for people to downsize, then lets talk about stamp duty!
Ones state and ones federal, but yes agree….retirees should be permitted stamp duty free purchase if they are downsizing from one PPOR to another smaller PPOR, include time limits to prevent dishonest flipping / low key investing
I actually think there should be no time limit. We shouldnt prescribe how long someone "should" live in a purchased property. You shouldnt be penalised for living in a house correct for you for only a few years.
It's the perfect argument for land tax.
@samyall: If they buy sell buy sell for investment purposes are they really genuinely downsizing or taking advantage of a loop hole?
@MrThing: Opt-in land tax as a yearly tax on the value of your home. If you think you might only be in a property for 5 years but dont want to rent you opt in for land tax instead.
This will allow people to move between houses more freely, freeing up more "suitable" houses for families.
If you are buying your forever home you'd opt for stamp duty.
@samyall: That was a suggested policy in NSW a believe recently or at the last election.
But no doubt a scare campaign eliminated it I bet
@MrThing: Correct. Labor's position was that it would end up costing more to the homeowner than stamp duty in the long run so axed it. Thats why there has to be a choice, let the homeowner decide. Hell, even have a threshold where it converts land tax paid to stamp duty and you no longer have to pay it. Best of both worlds! Except for the tax intake for the gov.
Sorry poor choice of words; this scheme isn't a handout, rather the aged pension and related centrelink payments are handouts.
We should provide welfare to those unable to work, and people should have the right to stay in their home. It would be unfair to refuse someone a pension because their home has gone up in value outside of their control.
But it's also not fair for the taxpayer to just hand free cash to someone with a multi-million net worth either, because you're effectively paying for someone else's inheritance.
Fairest solution is to make it similar to HECs, every payment is added to a running total indexed to inflation, and have that be repaid either voluntarily or from the estate before anyone else is paid out. Nobody is stuck eating cat food, nobody is forced from their home, taxpayer gets their money back if there are any assets remaining.
dunno why you got negged, this is a very sensible opinion
retirees who have benefitted from the most insane property appreciation can just sit on their fully paid off multimillion dollar houses and cry poor and put their hands out to the pension system because they wont downsize is ridiculous.
Don't worry, by the time we retire, this will surely be changed, applied to us… Sucks to be born right after the Boomer generation.
Boomers destroying the world for everyone else whilst all crying poor and being a bunch of nimbys
People who complain about inherited wealth either have none coming, plan on giving none or see no issue in robbing people of theirs.
See countries like Japan and the UK that have Inheritance taxes and see if beung unable to leave your home to your kids due to a 60% tax bill is something to want here.
I see nothing wrong with this.
Inheritances encourage asset hoarding and poor use of resources. In any other context, someone holding far more of something valuable than they could possible use is a bad thing.
Society is much better off with inheritances being front-loaded, what use is the family house when you're 60? Would have been very useful to have at 30 with 2 small kids though.
Maybe back when people died at 50-60, and their kids were still young, but now it doesn't make any actual sense economically to encourage it.
And that there, asset stripping, is communism in a nutshell.
No thanks.
@Benoffie: You get 'asset stripping' every time you sell a house, taxes aren't communism. The state paying old people a pension is closer to communism than this.
Wealth hording is a terrible capitalist view which is the source of so many of societies problems, the sooner people realize that the better we all will be
UK inheritance or death tax brings a n f-all, wealthy people plan around it
You can't take your property with you when you're dead; you might as well enjoy the ride.
You can't take your property with you when you're dead
Why not?
You can't take your property with you when you're dead
Religious zealots would disagree. If you need a body to be reincarnated, you should have your Toorak/Point Piper mansion too.
Would hate to be raised as a zombie in a pauper graveyard, better to have a nice mausoleum.
lol
Mum and Dad will be using this to fund the remainder of their retirement.
Mum and Dad's original plan was to sell their unit and go rent… god bless their souls but they're definitely two of the most ignorant people I've ever met.
If you are now monetising your PPOR, it shouldn't enjoy exempt status.
It should be liable for CGT and no longer be exempt from pension assets test eligibility.
This is a terrible idea, a reverse mortgage is no different than pulling money out of a redraw account.
Why would anyone take this offer up with such a harsh consequence?
https://dontpanicretirement.com.au/products/dont-panic source: