HI All,
This is my first post.
Husband (64) and I (59) have 5 IP's -strata units 2×2 beds and 3 x 1 beds in sought after inner city area
Current CV's = $1,280,000 + PPofR valued @ $500,000.
Currently owe $650K on Units on Inv loans predominantly
Rental Incomes = approx $56,000 per year before costs –
Looking to retire soonish & considering paying off a) some b) all of loans with Super payouts = definitely possible
Formal financial advice received says No to paying off "good loans" such as these.
Problem is …I feel I am working to pay the loans interest payments to gether with some of the income from the units.
Whilst I hear this ….. I am not wedded to it…..
We are cautious people who are trying to look after ourselves in the future.
We recognise now we will not be able to access centrelink pensions …altho somewhat hopeful about access to Medical Concessions card.
Interested in people's opinions re way forward.GB
You should really think this strategy through – income in your super is in a low-tax environment, when you retire this becomes a tax free environment. If you pay off the loans with the super, your income will have fewer offsets so will be paying tax on the income rather than nil from your super.
If able (think about tax consequences etc) set up a smsf & sell one or more of your IPs, transfer the proceeds (less tax) to the smsf & buy a couple of IPs, prior to going into pension mode. The income then becomes tax free when you retire. There are plenty of specialist super consultants around.
I don’t know enough about super to comment. But there are many things to consider and you should probably go and get a 2nd and 3rd opinion from a special SMSF advisor.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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