How to create a win-win situation for this?

Hum I would like to know the name of the person that gave you such load of bull dust over the phone.

Let’s see:
If the pensioner is single and a home owner, she can have $149,500 in assets, that counts all assets including home content, car, money in the bank etc. before it affects the pension at all Assets over this amount will reduce pension by 3 dollars per fortnight for every $1000 above the limit, cut off point is $306,250

The valuation of her own home, providing she lives in it and does not have a curtilage over 5 acres is totally irrelevant, 10 millions would not affect her pension.

If she sells the house she inherited for less than its market value, she will be deemed to have received the full market value; the full difference minus the allowable amount of $10,000 will be assessed as a gift to the buyer and will stay in her record for 5 years.

The income from the property (or any other source combined) is assessed separately and the test that allows paying the lowest amount of pension will be used.
Income of $120 a F/N will not affect the pension (single $212 for couple) Income over this amount reduces the pension by 40c in the dollar, cut off income is $1295 per F/N (single, $2164.50 couple)

Despite popular belief that to have assets or income for a pensioner is a “problem”, simple maths tells us that the pensioner is better off if he/she has a part pension reduced by an income producing asset.
It is unfortunate that some pensioners go to the extent to dilapidate life savings only to achieve the ultimate goal of acquiring full welfare eligibility.

I suggest to always checking with your local Financial Information Officer in Centrelink, make an appointment don’t consult over the phone. They are trained professionals and unfortunately most accountants are either outdated or misinformed on the subject, (some honourable exceptions excluded of course)

May God prosper you always.[biggrin]
Marc

Perhaps the lady could sell the house to you with vendor finance. Essentially she would allow you to pay it off over a period of time (say 20 years) with no interest on the payments. This means that your payments to her are capital repayments on the sale of an asset, and not income (like rent).

Keep smiling
Felicity

Hi all,
just to throw the cat amongst the pigeons, lets consider this lovely old lady sells the house at full market value, gets cut off from the pension (boohoo) has one hell of a good time for however long it takes to spend the sales profit (which would be all the $$ less commissions and taxes) and at the end comes back to earth to join up for the pension again.
Flamin heck, I’d hate to have that problem!
Hawaii here I’d come,…. I’ve been interested in the South of France,…. Bon Jour….

Frivolity asside, I like Marcs sugestion best. Sounds like he knows what he’s on about. This lady needs the right guidance. If she has family, then a win-win situation would also include them, wouldn’t it?
Even if you don’t get the house, you will be blessed by helping her out! Betcha.

Cheers

C@34

Felicity,

That was the solution I posted too.

Marc, you seem to be the most expert – how would Centrleink view the extended capital repmt situation if she sold the house?

E.g. she sells for Full Market Value (there you go Kay H) say $150K, 5% deposit = $7,500 then $7500K per annum for 19 years paid as monthly instalments? Or $15K pa for 9.5 years, whatever.

Cheers
Skippygirl:))

kimtruong81,

Why not have her vendor finance it to you.

You could organise the payments to be under her pension threshold so she gets her full pension.

Cheers,

Aceyducey

– Jan L.A. van de Snepscheut