When Joan retired the house she’d been living in for 40 years suddenly seemed too big for her. The value of her assets made her ineligible for an Aged Pension Payment* and low interest rates meant her superannuation and savings accounts were offering poor returns.
She realised she needed a smaller house and a new income stream.
Reluctant to move away from her friends and local community, Joan investigated building a new, smaller dwelling in her backyard. It turned out to be the perfect solution for Joan as well as a financially savvy investment strategy.
Joan chose a modern, all-inclusive modular granny flat that was installed in her backyard in a few short weeks. When she moved into her beautiful new home she started renting her larger house to a young family. The rental income she receives more than covers repayments on her loan, giving her a weekly income higher than she would have received on the Aged Pension.
Joan has added value to her property, created a new income stream and is loving life in her brand new, low maintenance home.
If you’d like to explore how a similar investment might suit your situation, let us show you HOW we can help. Our project managers and finance specialists combine forces to lead you through the stress-free process of evaluating, planning and installing a state-of-the-art granny flat investment on your property. Call us for an obligation free discussion on (02) 8004 2222.
* Assets tested include superannuation, bank deposits, shares and investment properties, but NOT the family home. Eligibility for the Aged Pension Payment is based on the following asset limits:
Table one: Full-pension thresholds
If your assets are below the thresholds in table one, you will be eligible for a full pension under the 2017 assets test.
Table two: Part-pension thresholds
Table two outlines the assets test cut-off point for those on a part pension.
If you have assets above these limits, you are not eligible for any pension payment.
For background information see our blog “Centrelink Pension – Reduced or Gone?”
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The blog is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should seek the advice of a professional advisor to consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs.