Property investment advice for couple about to hit their 60s

I have a question regarding property investing for people near the retirement age.

Scenario: 60 y/o couple, lives in ppor no debt. Earns about 100k pa combined no dependencies.

If they were to take out loans against their ppor, will lenders still treat them the same as they'd treat someone in their 30s? Assume not since they are looking at hitting retirement in 7 or so years?

Also a home loan against ppor is not tax deductible right? Is there a way to better structure the loan? LOC or something?

Thanks in advance
 
They wouldn't be treated the same as a couple in their 30's but it's not impossible either. There needs to be a solid exit plan in place for a lender to look at an older couple. Exit plan for IP's could be something as simple as selling. They would potentially be looking at reduced loan term too.

Purpose of funds determine deductibility not security.
 
As Kinnon said - its possible, but may need to demonstrate an exit plan (super, downsizing, etc). Choice of lender and LVR will also be important, some are more friendly to this type of scenario.

If they cash out for further investment, yes its deductible. Its based on the purpose, not the security used.
 
We had to offer an Exit Strategy when refinancing last year. We are in our mid 50s. I told the banks that we were going to sell PPOR in about five years time to pay off the loan on PPOR and retire on the cash. Their computers believed me. Silly computers.
 
I have a question regarding property investing for people near the retirement age.

Scenario: 60 y/o couple, lives in ppor no debt. Earns about 100k pa combined no dependencies.

If they were to take out loans against their ppor, will lenders still treat them the same as they'd treat someone in their 30s? Assume not since they are looking at hitting retirement in 7 or so years?

Also a home loan against ppor is not tax deductible right? Is there a way to better structure the loan? LOC or something?

Thanks in advance

It is the purpose of the loan which determines tax deductible status.

As pointed out, you will only have a 5-7 year working window so you would need to be able to demonstrate your exit strategy as well as being able to cover repayments & outgoings - do you have a deposit? Are funds coming from super? Have you considered a transition to retirement setup? Are you considering +/- gearing? Relying on cg over this time frame?

Only you and your financial advisor/accountant can put the entire picture together for your situation & asking questions fills in the blanks.
 
We had to offer an Exit Strategy when refinancing last year. We are in our mid 50s. I told the banks that we were going to sell PPOR in about five years time to pay off the loan on PPOR and retire on the cash. Their computers believed me. Silly computers.
That's it. Give em what the bank johnnies are looking for so they can tick the boxes.

After that anything can happen with your goals & situation.
 
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