Hi Kath, one thing to add with investment property expenses is land tax. The more properties you own and their value, the higher the tax bill. This alone has forced many landlords to sell their rental properties. This is more relevant here in Victoria. Another great video. As usual always liked too
Thank you Katherine, I learnt more today. In my case i have a few but in different countries and regard diversification not only in asset class but by countries and even it changes with currency fluctuations. keep up the good work
Hi Kath, I'm new to your channel and am loving the information you provide. So clear and easy to understand. I'm almost 65 years old. I've had an investment property for 20 years and I only owe 18K on it. I'm currently getting $360pw rent. The property is valued at around 260k. I own a home and will have about 60k of super left come retirement age. My question is, do you think I should sell as I feel I'd love to get the full aged pension. This video was more about buying an investment property and retiring,. I've almost paid mine off so it's a different topic I guess. Any information will be appreciated. Kind Regards John
Hi Katherine, Reasons bank allowed you to borrow investment loan are the equity in your property & your affordability. Could you please clarify if this investment property is considered "secured" from your family home- hence could be potential issue later or not?
thanks that was good, i was thinking along the same lines, rental properties are more ego based ideas of wealth, and previous to retirement they can be useful for building assets, still dangerous. How ever superanuation to me is a much better form of income stream, no tax, no tennents...no on going costs, no garden maintenance.....no insurance no rates....and no physical effort in actually running it on paper.....personally if super drops 25% like in 2008 at least that will increase your potiently for a higher pension rate
Another great video, thank you. After considering all this I think it’s best not to have investment property in retirement in my situation, rather I will be free and happy if I rely on govt pension.
Thank you, considering high costs of holding a property, it is much easier, safer and reliable to have government pension plus supplementary income from your private sources 😀 and there is no headache
Hi Katherine, I retired at 78 years of age, can I transfer my investment property into my daughters name to reduce asset before applying for the full pension
when i used a retirement income planner it looks like owning one 600000 investment property owned in full at retirement would mean no pension for me. :(
Yes, Chris Asset Test is harsh, but often income earned through rent (less expenses) with no Age Pension support, might not be enough to sustain your retirement lifestyle
@@AboutRetirementTV its very annoying. It seems strange you might be better off selling your main house and your investment and "upsize" in retirement to one more expensive main house you live in.
@@chrisj6321 I agree with you, but the negative is that should you do this, it is very likely that your overall income may drop, if mostly relaying on Age Pension. Planning around assets, income and Age Pension is a balancing act.
If I live in my Daughter's house and has only one house which has rental inome of $ 400 per week. My only house valued at $ 600k and has loan $250k. What will be my asset test amount. Under Homeowne of $ $405,000 or Non-homeowner of $ $621,500. Please advise. Thanks
@@AboutRetirementTV Thanks for your update. That mean my asset test is around $ $350k ( $600-$250K ) only under Non-Homowners of Threshold $621K.. I have passed the asset test and may be reduced Age pension due to my rental income.
Hi it is not prohibited to buy a property outright. However, if you are a non resident then you must apply for approval through the FIRB before buying residential real estate.
Hi Katrina, I don't know which state you are in, but most certainly there are still spots to buy properties for such price, as long as you stay away from major cities or towns
Lots of nice houses and Townhouses, Units & Villa's valued at $300k or below up here in Tropical Cairns Qld. Fifteen years ago our son bought a lovely Townhouse 12 minutes South of Cairns city for $51k. The rent he recieved paid it off completely, along with paying for the body corp etc. It has always been self supporting. Now that it fully paid off, he happily collects his $320pw with minimal out-goings. The Townhouse is now valued at $270k. So been a great little investment for him.
There's definitely properties around $300,000. But you have to consider all factors. In some towns buying a rental isn't an issue, but selling it might be & it may not have much capital growth. Knowing how long you'd want to own it is significant factor.
So how do you feel about owning a property as a retirement income tool?
Hi Kath, one thing to add with investment property expenses is land tax. The more properties you own and their value, the higher the tax bill. This alone has forced many landlords to sell their rental properties. This is more relevant here in Victoria. Another great video. As usual always liked too
This was very helpful. I'm 15-20 years from retirement, but I've realised I need to have a better understanding of where I'll be in the future.
Wow! Thank you Katherine.you are the ONLY financial planner who has provided this information... .
Hi Cheryl, I take it as a compliment 😀I am so glad you are taking all that information in. It will help a great deal knowing what to do next.
Thank you Katherine, I learnt more today. In my case i have a few but in different countries and regard diversification not only in asset class but by countries and even it changes with currency fluctuations. keep up the good work
That's very interesting Alan. That is a different level of property diversification. Love that 😀
Hi Kath, I'm new to your channel and am loving the information you provide. So clear and easy to understand. I'm almost 65 years old. I've had an investment property for 20 years and I only owe 18K on it. I'm currently getting $360pw rent. The property is valued at around 260k. I own a home and will have about 60k of super left come retirement age. My question is, do you think I should sell as I feel I'd love to get the full aged pension. This video was more about buying an investment property and retiring,. I've almost paid mine off so it's a different topic I guess. Any information will be appreciated. Kind Regards John
I learn a lot from your informing videos. I will need your help for my husband's retirement. See yoy soon. 😊
Thank you, glad to hear that those videos are helpful. And feel free to reach out anytime 😀Katherine
Love it. Very informative.
Hi Katherine, Reasons bank allowed you to borrow investment loan are the equity in your property & your affordability. Could you please clarify if this investment property is considered "secured" from your family home- hence could be potential issue later or not?
thanks that was good, i was thinking along the same lines, rental properties are more ego based ideas of wealth, and previous to retirement they can be useful for building assets, still dangerous. How ever superanuation to me is a much better form of income stream, no tax, no tennents...no on going costs, no garden maintenance.....no insurance no rates....and no physical effort in actually running it on paper.....personally if super drops 25% like in 2008 at least that will increase your potiently for a higher pension rate
ha, ha I love the way you think Peter, but yes, property is most certainly more suitable if one wants Age Pension entitlement.
Another great video, thank you.
After considering all this I think it’s best not to have investment property in retirement in my situation, rather I will be free and happy if I rely on govt pension.
Thank you, considering high costs of holding a property, it is much easier, safer and reliable to have government pension plus supplementary income from your private sources 😀 and there is no headache
Hi Katherine, I retired at 78 years of age, can I transfer my investment property into my daughters name to reduce asset before applying for the full pension
when i used a retirement income planner it looks like owning one 600000 investment property owned in full at retirement would mean no pension for me. :(
Yes, Chris Asset Test is harsh, but often income earned through rent (less expenses) with no Age Pension support, might not be enough to sustain your retirement lifestyle
@@AboutRetirementTV its very annoying. It seems strange you might be better off selling your main house and your investment and "upsize" in retirement to one more expensive main house you live in.
@@chrisj6321 I agree with you, but the negative is that should you do this, it is very likely that your overall income may drop, if mostly relaying on Age Pension. Planning around assets, income and Age Pension is a balancing act.
When we are living with children and have no house in Australia does it makes any difference?
If I live in my Daughter's house and has only one house which has rental inome of $ 400 per week. My only house valued at $ 600k and has loan $250k. What will be my asset test amount. Under Homeowne of $ $405,000 or Non-homeowner of $ $621,500. Please advise. Thanks
As you don't live in the house, this is not your home, it is rented, therefore you should be treated as a non-home owner.
@@AboutRetirementTV Thanks for your update. That mean my asset test is around $ $350k ( $600-$250K ) only under Non-Homowners of Threshold $621K.. I have passed the asset test and may be reduced Age pension due to my rental income.
Yes, this would be correct. It is not a bad idea to live with your family and rent your own place. Well done 😀
Is it prohibited to buy a property outright? I cannot find relevant information in google. Can hou share more infor regarding it?
Hi it is not prohibited to buy a property outright. However, if you are a non resident then you must apply for approval through the FIRB before buying residential real estate.
If I want your help for pension is it costly?
I would like to know where you can buy a property for 300k😊
Hi Katrina, I don't know which state you are in, but most certainly there are still spots to buy properties for such price, as long as you stay away from major cities or towns
Lots of nice houses and Townhouses, Units & Villa's valued at $300k or below up here in Tropical Cairns Qld. Fifteen years ago our son bought a lovely Townhouse 12 minutes South of Cairns city for $51k. The rent he recieved paid it off completely, along with paying for the body corp etc. It has always been self supporting. Now that it fully paid off, he happily collects his $320pw with minimal out-goings. The Townhouse is now valued at $270k. So been a great little investment for him.
There's definitely properties around $300,000. But you have to consider all factors. In some towns buying a rental isn't an issue, but selling it might be & it may not have much capital growth. Knowing how long you'd want to own it is significant factor.