Family tax benefit rules are up the creek

There's not many reasons to buy a rental property when you're on a part-pension. Being on a mere allowance its not so bad, but pensions are cushy.

You get a positively geared place, the extra income might tip you over the limit and you lose your pension card. Then with all the perks gone you're worse off.

A negatively geared one in your husband's name might mean your pension goes up, but will it go up as much as your husband's income goes down? And will the loss be added on for FTA purposes?

Then there's the asset limit. These limits are extremely low, you need to ask an accountant about those.

Honestly, by far the best option to make money from property while you're on a pension or benefit is by renovating and onselling the house you live in every couple of years. Just make sure you start with cheap or undervalued houses so there's lots of opportunity to add value, and you actually make a real profit after selling fees.

Owning a rental on the pension usually only works out well if it is heavily positively geared, and you're on a full pension or close to it so you aren't close to the edge of losing the pension perks. The reason for this - with the 'endgoal' of property investing with low debt and lots of rental income being the ideal case - is because it is set up for pensioners who bought an IP many years ago and they are retiring with it near paid off and returning a nice yield, and they have no other income besides rent. The pension system is NOT set up to encourage people to start investing in property while they are on a pension.
 
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