Rick Otton Reviews 2013 Federal Budget Measure For Downsizing Australian Property Investors

Share Article

In a recent interview, real estate millionaire Rick Otton has discussed the implications for the property market of the trial program, announced in the recent 2013 Federal Budget, for pensioners to downsize their homes without negatively impacting their pensions.

rick otton, how to buy a house for a dollar, property investment, real estate investing, creative real estate, negative gearing, positive cash flow

Live Property Investment Training Event with Rick Otton

It’s important for people to be able to access innovative strategies to build a property portfolio to suit their needs. I think this is a good example of thinking outside the box to address a real estate issue.

A pilot program announced in the recent 2013-14 Australian federal government budget may have interesting implications for the Australian property market, revealed real estate strategist Rick Otton in a post-Budget interview.

The program is aimed at encouraging older Australians on the Age Pension still living in the family home to downsize to a property more suitable for them. The current rules for means-testing of the pension exempts the family home, meaning that the value of the property is not counted when considering if a person is eligible for the pension.

“While this is intended to help Australian pensioners manage the cost of living, it can also mean that people stay for longer than they want to in large family homes,” explained Mr Otton. “Because their down-sized property will usually cost less, they are concerned that having surplus funds from their house sale will reduce their pensions and benefits.”

“The Means Test exemption for the family home has meant that older Australians are reluctant to sell their larger houses to move into something more appropriate. I strongly believe we need ways to encourage empty nesters and other people living in larger homes to downsize if it’s appropriate for them. This will bring more of these family-sized homes onto the market, add greater opportunities for property investors and house-hunters, and have an overall positive effect on housing affordability,” said Mr Otton.

The budget initiative allows pensioners meeting the criteria to put up to $200,000 of the proceeds of their house sale into a special account, if they choose to downsize. The money is not counted as part of the pensioner’s income or assets for pension purposes for up to ten years, or until money is taken out of the account.

“It’s important for people to be able to access innovative strategies to build a property portfolio to suit their needs. I think this is a good example of thinking outside the box to address a real estate issue,” said Mr Otton.

Mr Otton has spent over a decade teaching people how to make real estate investing work for them. He will be holding a free one day property investing seminars in Australia at the end of June to further spread his methods for growth and cash flow.

For full details of Mr Otton’s seminars visit HowToBuyAHouseForADollar.com or phone 1300 888 450 in Australia.

About Rick Otton

Rick Otton has spent decades making money by snapping up inexpensive real estate and putting it to work building wealth, and teaching others to do the same.

He is the founder and CEO of We Buy Houses, which operates in the US, UK, Australia and New Zealand, and through this business he puts his strategies to work every day.

Mr Otton received his start in alternative real estate investment in 1991 in the US, and within a year acquired 76 properties. In subsequent years, he made a fortune using his low-risk, high-reward strategies to inexpensively acquire real estate. He continues to do so.

As well, Mr Otton travels between his home in Australia, and the UK, sharing his wisdom and teaching others how to buy and sell real estate, free from the constraints imposed by traditional lenders.

In 2013, Rick is celebrating the 10 year anniversary of introducing his property option strategies to real estate investors in the United Kingdom – the first person to reveal these ground-breaking strategies. In 2008, he created the first of his ‘Houses for a Pound’ strategies, upon which he grows as markets and laws evolve.

Mr Otton has been featured in a variety of television programs and magazines and in 2013 he published ‘How To Buy A House For A Dollar’ for the Australian market. This book has been named in the list of the Top 10 Most Popular Finance Titles for 2013, as voted by Money Magazine and Dymocks Book stores. A UK version is on the drawing board.

For full details of Mr Otton’s seminars visit HowToBuyAHouseForADollar.com or phone 1300 888 450 in Australia.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Jane Otton
Follow us on
Visit website