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Question regarding IP as a potential retirement property

Discussion in 'General Property Chat' started by Dan Donoghue, 19th Jun, 2015.

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  1. Dan Donoghue

    Dan Donoghue Well-Known Member

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    Hi, So a few folks in the past have told me it's a smart idea to make your first IP the one you potentially want to retire into.

    For example, Wife and I would one day like to retire to Main Beach (QLD), if we bought an IP there there would be no worries about Capital Gains because we would not be selling it in the future, just moving into it.

    Do you guys see this as a potentially good idea also or is there a reason why you would avoid this? The only thing I can see from my uneducated standpoint is that if I buy a Unit on the beach now, when I retire (Planning in 20 years) what sort of condition will the place be in? Sea salt erosion, 20+ years wear and tear etc etc.
     
  2. Heinz57

    Heinz57 Well-Known Member

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    I've looked at this too but you would have to ask yourself is it fundamentally a good investment? Do you buy elsewhere, enjoy the growth and cop the CGT? Then buy where you want to when the time is right.
     
  3. Big Will

    Big Will Well-Known Member

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    You never know where you life will be in 20+ years, you might like Main Beach today but maybe in the future you don't or due to work you move to Melbourne and love it down here, as I was from Brisbane and now living in Melbourne with no plans of going back. However I can not say with 100% that Melbourne will be the place I will retire at.
     
  4. keithj

    keithj Moderator Staff Member

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    I once thought that.... now I've been other places & I've thought it about those places too.....

    When you've tried everywhere, I might agree it's a good idea.... until then enjoy more experiences in different places.
     
  5. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    This can be a good strategy for some. You understand that CGT isn't triggered until or IF you later sell then its calc pro-rata. If you die from old age your kids would inherit the cost base too and only when they sell might CGT be paid based on your original cost.

    Never be in a hurry to pay CGT.
     
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  6. Kael

    Kael Well-Known Member

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    The way I look at it is simple. I plan to purchase as many properties as possible where the numbers add up, so that I can profit from these and then eventually buy whatever property I'd like to when I do eventually retire. Like Big Will mentioned, you never know what will happen or where your life will be.
     
  7. Dan Donoghue

    Dan Donoghue Well-Known Member

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    Some interesting points guys and completely right, as much as we love Main Beach we may find somewhere we like more over the next 20 years.