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Harry's Life Plan
Retired for four years, Harry is considering buying property overseas as a ‘holiday house’ for his regular visits to his daughter in Vancouver. He would still like to keep his home of 20 years in Brisbane but it could do with a face lift. While his Super savings and Age Pension support him well enough, he’s stuck when it comes to finding funds for property investment or renovations. He’s puzzled about rollovers and what other options could enhance his cash flow. Is it time to find a part time job?
Harry would do well to speak to a financial adviser about how additional property ownership could adversely affect his benefits. As age pension may be critical to Harry’s cash flow, he’ll therefore need to examine benefit limits before he makes a move (especially about going back to work!) As an Investment, his mortgage-free home is still his biggest asset, especially with Brisbane’s phenomenal market growth in recent years. In Harry’s case, it’s important to find out whether he can lock away funds (for greater yields) or have easy access to them. Before making another property commitment, Harry needs to see what impact his Insurance may have if his daughter should become sole beneficiary to his estate. Ultimately, Harry has some homework ahead of him even with the help of a financial adviser: He’ll need to inspect properties in Vancouver to determine if they can be rented when he’s not there. His adviser can let him know what impact this may have on his income and benefits.
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