Hello everyone.
OK, long story short. Lost everything in the crash of 1990. I took on all our debts as I was the only one working then himself did a runner and left me with it all. I have paid everything off and brought up kids by myself so no opportunity to save and buy again. Kids have now left home.
I have a management background but due to my age and illness, have had no luck in gaining employment. I have used my super to subsidise my sickness benefits for the last 2 years and even though my illness is now worse, Social security have deemed that I am fit for work therefore I need to change to unemployment benefits and search for work. Simply can't happen so I've had to drop my social security income.
I am now 55 years old and forking out $1800 a month in rent.
I have cashed in everything, including my super, and have approximately $100,000 but no income. I've looked at a few scenarios to give me some security for the future but am perplexed at what would work for me. I have health problems and while I'm able to do things administratively, I'm not able to physically.
Scenario 1.
Kids (2) have agreed to borrow approx $50,000 each and together with $75,000 of mine, we buy a block of land in the country and put a removable house onto the property. Land approx $100,000, removable house approx $60,000 with about $15,000 for extra costs. No mortgage but many many kms for me to travel for umpteen medical appointments. (Usually 3 or 4 a week).Scenario 2.
I've looked at investment properties in the USA and they are averaging about $30,000 to $40,000 with a nett return of approx $400 per month. Not enough to live on but hopefully in 5 – 10 years their value will have increased and I could sell to capitalise and live on the return of the sale.Scenario 3.
Has been put to me to open a dog wash business with an added store, and put someone in to run it for me. I've costed the setup and it would be approx $30,000 to $40,000 with break even in approx 6 – 8 months. Due to me not being able to run it myself my income would be limited initially but hopefully build as the business builds. I have experience in setting up new premises so am aware of most of the pitfalls. I could potentially sell in 5 – 7 years for a substantial gain.This is my last opportunity to get some security for my old age. I need someone to take an objective look at what I've sussed out and tell me what they think. Yes, I should have made better choices re financial management and husband but I didn't so this is where I am now.
I can't see the wood for the trees as all I'm seeing is the money running out and me being left stranded.I'd be most grateful for any feedback, constructive or otherwise.
Thanks in advance,
Lestki
Sorry to hear about all this. If you are ill your doctor should issue you with a statement to give to Centrelink.
I don't understand what you are saying about social security and unemployment. Something doesn't make sense.
If Centrelink has decided that you can work, you should be on the Newstart Allowance. Why on earth would you drop that, given that it's some income while you look for the kind of work you can do, and it also subsidises your rent.
I understand that you need to put in an effort to fulfill the requirements to look for work but it's not onerous, especially at your age. You will probably be required to show that you've contacted 3-4 companies per week. If you don't get work then they will put you touch with an agency which will interview and help you. During the interview it will come up that your illness affects your working ability. If you still don't get work, then they require you to do some limited hours of volunteer work but you still get the NS allowance.The rent you are paying is horrendous by the way. It would help to move to cheaper digs.
Your Scenario 2 is awfully risky and you can't afford to take such risks.
Scenario 3 sounds like a money drainer not a money maker.Someone else on this forum could advise you on Scenario 1.
Good luck
Where are you living that is demanding this $1800 per month of rent?!
What help is Centrelink providing at the moment? Are you receiving an unemployment or disability benefit? Do you have concession cards that give you discounts on medication, household bills, car registration etc?
Where are your medical appointments located?
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I won't touch scenario 2
Thanks everyone for replies so far. To answer some of your questions:-
Yes, my dr has given me a certificate to state I am unable to work and she has spoken to Centrelink on my behalf but they have deemed that I am capable. I've also provided letters from my eye surgeon, opthalmologist and spinal surgeon to no avail. I was required to meet with one of their consultants to determine whether I was fit for work or not and she has declared I am. I was led to believe I would be entitled to a disability benefit but it seems not. I have just lhad unsuccessful surgery on my eye and have now lost sight in it and the other is not good so am no longer able to drive. Centrelink have declared that I can use public transport to get to and from a workplace, interviews and their required appointments. I also have a herniated disc, have had failed spinal surgery, use a walking stick and am in constant pain. Cherry on the cake is an autoimmune disease which also affects my health. A bundle of joy eh?
I use public transport as a means to get to medical appointments but to commute on a daily basis would be impossible. I am not precious and will do what I have to do but I am simply not mobile enough to commute to a job as I am exhausted after every outing and in constant pain. So that's why I am not prepared to go through the hoops for Centrelink. Having to attend newstart appointments to learn how to apply for jobs when I've been working for over 30 years and attending interviews for the sake of it is just not worth the pain I end up in. Sorry for scroller.
re rent. I am in an old house in an outer northern suburb and have only moved here as my last rental, which lasted over 10 years, was sold. I had been turned down for over 10 properties, as I am not working, so I had no option other than take what I could get. Yes I could move out further but that then leads to further difficulties for medical appointments which I attend on a regular basis. It is not a horrendous rent in Melbourne and I'm not in a classy suburb or house. To move would also cost me another couple of thousand.
Sounds like I'm making a lot of excuses for everything but I'm simply trying to tell it like it is. No, Centrelink don't give me any assistance at all. They have advised me that as I have the money to support myself then I am not entitled to further assistance. I enquired re assistance with healthcare card etc but I don't qualify because of the money I have.
I'm rather exhausted from all the tooing and froing with them and just felt it was easier to not receive the newstart than to fight every inch of the way. Perhaps if were a druggie it would be easier. Know a few of them on the disability benefit.
I'll take on board any advice thrown my way and I'm just looking for what is best for me in my circumstances.
Thanks again
So in summary:
You are not eligible for disability benefit at all.
You are not eligible for unemployment benefits due to having access to liquid funds.
Are you aware that your home would not be counted as assessible income? If it were possible for you to sink your money into a property, surely it would no longer be assessible as liquid income and therefore you'd be eligible for newstart allowance? Land in areas like Melton starts at about $99k.
I really think you are paying wayyyyyyyy too much for rent. A quick internet search shows that city apartments start at around $220 which would solve your commuting to medical appointments problem. Further out it is indeed possible to find places for under $200. (Werribee is one such example.)
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
You need to go through the appeals process with Centrelink STARTING TODAY. This is intolerable. Of course people can have money and property to get benefits – you may have to wait 13 weeks but you are still eligible.
Our tax dollars are meant to help people like you get your life back in order. The staff in your local office are fobbing you off.
Click on the links on this page (ARO first then tribunal) and get going. You will need to have lots of copies of all your medical reports and be on top of the paper work. You've been in administration so this will be easy for you. You can write well so that will help a lot. Use the talents and energy that you do have to get the benefits you are entitled to.
http://www.centrelink.gov.au/internet/internet.nsf/legal/review_appeal.htmGo girl!
Singer wrote:Of course people can have money and property to get benefits… not necessarily so. apparently if you have more than $5500 in ready cash, you are ineligible. Refer here:
http://www.centrelink.gov.au/internet/internet.nsf/payments/newstart_iat.htmI recall once upon a time when a friend of mine was made redundant from his job. Someone advised him to immediately put his cash onto his homeloan so that it would not be assessible income for benefits. Had he not done this, he would have received no assistance.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi JacM
No, I don't believe that is correct. Your link is for immediate payment only.Here is the schedule for assets you are allowed to have.
http://www.centrelink.gov.au/internet/internet.nsf/payments/chartab.htm#bIf a person has that amount ($307,000), then they have to wait 12-13 weeks for benefits to kick in.
Feel free to correct me if you think I have it wrong.
Lestki; there are financial planners at Centrelink offices. I'm not sure how effective they are but you are in need of some solid advice that's for sure.
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