Selling or Renting Your Home to Fund Aged Care? What to Consider in Today’s Market
Thinking about selling your home to enter Aged Care? For many people moving into Residential Aged Care, selling or renting their former home is a key strategy to help cover costs—particularly the upfront Residential Accommodation Deposit (RAD). However, with the current market conditions, selling may not be as straightforward as it once was.
The ongoing impact of social distancing rules, economic uncertainty, and shifting real estate trends has made selling or renting property more challenging. If you’re facing this situation, it’s essential to explore all options and seek expert advice to make the best financial decision.
Challenges in Selling or Renting a Home During Uncertain Times
The property market has experienced significant changes, making it more difficult to sell a home quickly and at the desired price. Several key factors have contributed to this:
🔹 Restricted Auctions & Open Houses – Social distancing rules have limited traditional selling methods, reducing buyer competition.
🔹 Economic Uncertainty – Job losses and financial instability mean many potential buyers are hesitant to commit to a purchase.
🔹 Stricter Lending Requirements – Banks are taking a more cautious approach to approving home loans, making it harder for buyers to secure financing.
🔹 Lower Rental Returns – Many tenants facing financial strain are negotiating lower rent payments, affecting potential rental income.
These factors don’t just impact new aged care residents—they also affect those who moved into care two years ago and are about to lose their Age Pension exemption for the home.
If selling or renting isn’t currently viable, what other options are available?
Financial Strategies to Manage Aged Care Costs Without Selling Immediately
Still thinking about selling your home to enter aged care? Rather than rushing to sell in a weakened market, consider these alternative financial solutions:
1. Pay a Partial Lump Sum & Use the RAD to Cover Fees 💰
Instead of paying the full Residential Accommodation Deposit (RAD) upfront, aged care residents can:
✔️ Pay only a portion of the RAD as a lump sum.
✔️ Allow the aged care provider to deduct ongoing fees from the deposit balance.
✔️ Retain more flexibility while waiting for the property market to recover.
This option provides immediate relief while preserving long-term financial stability.
2. Access the Home Equity Access Scheme (HEAS) for Cash Flow Support 🏡
The Home Equity Access Scheme (HEAS) allows eligible homeowners to borrow against their home equity to increase their income. This can be particularly useful for:
✔️ Delaying the need to sell until market conditions improve.
✔️ Maintaining cash flow for aged care fees and other expenses.
✔️ Keeping the home as an asset while still accessing funds.
The loan is repaid when the property is eventually sold, providing a flexible funding solution.
3. Explore Financial Hardship Provisions for Aged Care Fees 📉
If selling isn’t possible and finances are tight, some aged care residents may qualify for financial hardship assistance.
✔️ Hardship provisions can provide temporary relief for residents struggling to meet their aged care costs.
✔️ Each case is assessed individually, so speaking with a financial adviser is essential.
Get Expert Guidance for Your Aged Care Financial Plan
Navigating aged care finances can be complex, especially in uncertain times. Seeking advice from:
🔹 A real estate professional to evaluate current market conditions.
🔹 A financial planner accredited in aged care to explore alternative funding strategies.
Making informed decisions now can prevent financial stress later.
💡 Need Help Exploring Your Options?
We’re here to assist. Give us a call today to discuss your situation and find the best solution for your aged care needs.