Keep in mind that you don’t need to pay off investment property when you retire. You can simply maximize the amount of super money you have and withdraw enough each year to make the loan payments.
We are both 68 years old, work part-time but want to decompress even more. We have a house in the city worth around $3 million and a super around $1 million. Our combined employment income is approximately $100,000 per year. We have rented out our townhouse and are renting out a regional property, which our son bought as an investment. We rent the house to him for $650 a week and receive $1,300 a week for our house in Sydney. The arrangement is secure. We have a mortgage of $190,000 on the house in Sydney and two other equity loans of around $280,000, which we took out to help our children buy their house. We’re happy with the move, but did we make a big mistake?
I think you have put yourself in a perfect position.
By keeping your residence in the city, you have six years from the time you moved to reap any future capital gains free of capital gains tax.
Also, by renting in a regional area, where you can decide to retire, you give yourself an idea of what retirement would be like if you decided to stay in that area.
I believe children should raise their hands – not handouts. Helping them now at a time when they need it most and when you’ll be there to watch them enjoy it is a great strategy.
My problem is that my baptismal name is not the same as my known name. What is the best way to deal with Centrelink regarding my identification?
Human Services chief executive Hank Jongen said Services Australia will need to verify your legal name when claiming payment.
If you have changed your legal name, you will need to provide supporting documentation. This can be done by providing an original document from a state or territory birth, death, and marriage registry that shows your name change.
If someone needs help with their application, or more information on how to prove their identity, they can visit servicesaustralia.gov.au/identity.
Bear in mind that you can apply for old-age pension 13 weeks before reaching retirement age.
- The advice given in this article is of a general nature and is not intended to influence readers’ decisions regarding investments or financial products. They should always seek professional advice that takes their personal circumstances into account before making financial decisions.
Noel Whittaker is the author of Retirement Made Simple and many other personal finance books. Email: [email protected]