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  • Profile photo of GeekayGeekay
    Member
    @geekay
    Join Date: 2004
    Post Count: 2
    January 4, 2005 - 4:11 am
    Originally posted by Kerri-67:

    Kez :)

    Hi Kez
    The asset test is:
    Single pensioner: Full Pension Up to $153,000. For part pension up to $309,750
    Couples $217,500 – $478,000
    You mums home (place of residence) is not counted as an asset, even if it’s worth $1M.
    Assuming you mum borrows for the IP, the loan is deducted from the value of the IP, and the net amount is assessed as an asset.
    Tax deductible costs eg loan interest, rates etc, are allowed to be deducted from the gross rent, and the net amount is assessed as income.
    I would generally advise pensioners against this strategy ie borrowing for IPs, as it tends to be fairly inflexible, eg if you run a bit short, or needs money for repairs, you can’t sell a part of a house, if int rates rise, or she has a vacancy, she has no real surplus income to cover it

    Garry

    Profile photo of GeekayGeekay
    Member
    @geekay
    Join Date: 2004
    Post Count: 2
    April 13, 2004 - 6:46 am
    Originally posted by Balliez:

    I know this carn’t be perfectly answered, but am i intrested that if you did/had to start from scratch how long would it take you to retire. I’ll define retire as 50,000 per year.

    Just wondering due to I am only 16 amd have just gotten into the Job market[buz2], and 1st job i “loved it”[confused2] *cough cough* [confused2] but since then i have chnaged jobs but still i am not looking forward to working until iam 55.

    Thanks Balliez

    The weak will feed off of the strong until they are strong enough to be fed off of…

    Geez, nothing like starting early[blink]

    For a start, based on an inflation rate of 3%, todays $50K will be worth $158,351 when you’re 55.
    So, assuming you just wanted to live off the interest, and retain your capital, you will need to invest $3,167,026 @ 5% to get $158,351 gross ie before tax. Less if you are prepared to use up your capital.
    Sounds scary, doesn’t it[crying]

    Geekay

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