DomaCom offers a solution that will help Australians benefit from government measures to improve retirement outcomes which encourages some groups of retirees to access the value of their home to fund their retirement.
In addition, the Government’s tax-free downsizer contribution allowance would provide an opportunity to top up superannuation savings using the proceeds from the sale of the family home and this could be done regardless of caps and restrictions such as the work test and age limits that would otherwise apply, the firm said.
At the same time, the Australian Tax Office (ATO) confirmed that a partial disposal of a home could be claimed as downsizer contributions and this was extended to DomaCom’s Senior Equity Release product, offering an advantage for those retirees wanting to stay in place but accessing their housing wealth debt-free in order to increase their retirement savings.
According to the firm, the family home should become an active asset and it would be critical that “fit for purpose” financial products were made available to senior Australians wanting to stay in place and live well in retirement.
DomaCom’s Senior Release Equity Release would allow retirees to stay in their home and take full advantage of the Government’s downsizer contribution offer and live well in their retirement, the firm said.
“Unlike reverse mortgages which are debt-based credit products, DomaCom’s Senior Equity Release solution is an advice-based financial product that enables retirees to improve their retirement income by selling part of their home whilst retaining the right to stay in their home and avoid going into debt,” DomaCom said in a press release.
“Although Australian retirees are amongst the world’s wealthiest, the bulk of their wealth is stored in their family home and the vast majority simply do not want to sell and move away in order to access some of that wealth. DomaCom has carefully designed its equity release product so that it is suitable for a broad range of retirement income strategies including those that take advantage of Government measures introduced to encourage retirees to access the value of their home,” DomaCom chief executive Arthur Naoumidis said.
