Sell Tasmanian property to put funds in Super.

Hi Team my father owns outright a 4 x 2 x 2 house in Launceston on a decent block. It’s gone up 10-15% in the last 12 months. He currently rents in Sydney and his income is through a disability pension. He can’t rent the place out as it will effect his pension. He is considering selling it and can get a good price compared to 12 months ago and putting in super. Does this sound like a good idea ? Is there another option where he could keep ? Will he loose the whole pension or only some if he rents it?

 

If he sells up, wouldn't that also affect his pension anyways ?

 

There are financial planners who specialise in arranging their client's assets and income so they can maximise their pensions/benefits. Every situation is different and there is no common answer.
Remember that if he rents his personal accommodation, the income and assets tests are increased over and above what they are for home owners.

Have you considered renting out the house, declaring the effective income - Talk to an accountant. He could possibly keep a part-pension with the medicare/pharmacy benefits.

 

I’m not to sure mate, to be honest

 

You should call up centrelink and find out.
On 2 occasions I had 2 different clients telling me there parents were gonna transfer the property to their name and both were told it was going to affect their pension if they did, even when the parents weren't receiving any money from The transfer.

 

Yes you can’t actually do that as it will still effect the payments. You can only gift I think 10k a year and it Has to be a once off. So we can’t do that. My Dad has spoken to a few people and Launceston had really peaked and he can get an extra 150k on top of what he could have got 12 months ago. Having the money invested in super isn’t a bad thing

 

It would be good to speak to an expert. But I believe he’d loose almost most of the pension as what he’d be making in rent would be 2 1/2 time the pension. I will keep digging around to see. Thanks

 

Hmmmm.... rent it out at 2.5 times pension OR keep the pension by keeping property vacant.....

Unless the non-monetary benefits of the pension outweigh the difference, the choice doesn’t seem that hard. This one is obviously over my head....

 

He’s be selling the property to put into to his super or even utilise the money to put into an apartment in Sydney. But most probably his super

 

I actually think I mis calculated this one it would be the same as his pension I most probably a bit less as he’d have to pay tax and management fee’s