For example, when your land value is $1,000,000 against a capital improved value of $1.6m, you will be charged $4,650 in 2025. One of your options to continue using your property is a Line of Credit reverse mortgage. You set a facility amount to use when you wish, and interest is charged on the amount you use. Note that interest is compounding. If you take a long-term view, with a capital growth of a conservative 3%, that is $48,000 growth per annum ongoing. Using the reverse mortgage Line of Credit, borrowers have the capacity to pay Land Tax and most other maintenance costs in order to retain their prized enjoyment.
An amount of $800 per month for 2 years should not affect any age pension entitlements. Speak with Paul to learn more about reverse mortgages and gifting and how your personal situation may assist your family.
Paul has helped thousands of Senior Victorians to successfully negotiate the complex rules that apply to both Pension Entitlements and Aged Care costs and fees. Many senior Australians have limited resources to improve their financial position. Many are on a fixed income, either from Superannuation or the Aged Pension. Paul will discuss your loan structure and advise whether there may be any pension impact. It is important to consider that a pensioner couple may one day have their pension income reduced from couple to single rate ( from $1,458 a fortnight to $967.50) should one of them pass away! Paul will discuss ways you can prepare for this and other ‘Later Life’ expenses.
