Why are you selling - which state
- Thread starter INVSTOR
- Start date
We are looking at "selling" our half of a house hubby shares with my parents into their trust. They will be "selling" their half to the trust as well.
We get some cash which we plan to reduce our loans and improve our cash flow.
We wouldn't sell now on the open market because we don't want to give up the potential future capital gain. However, by selling to the trust, my parents are happy that they have increased their holding, and one day the capital gain on half a house that would have been ours, will still be ours as we are the beneficiaries of the trust.
I cannot see any downsides to this right now. We are happy. My parents are happy. We have an appointment with the accountant next week to sort out the nuts and bolts and do some tax planning before we commit.
We get some cash which we plan to reduce our loans and improve our cash flow.
We wouldn't sell now on the open market because we don't want to give up the potential future capital gain. However, by selling to the trust, my parents are happy that they have increased their holding, and one day the capital gain on half a house that would have been ours, will still be ours as we are the beneficiaries of the trust.
I cannot see any downsides to this right now. We are happy. My parents are happy. We have an appointment with the accountant next week to sort out the nuts and bolts and do some tax planning before we commit.
Good on you Wylie,
Great plan and awesome that your parents are so on the ball to do this with you.
Regards JO
Thanks Jo. I really am looking forward to paying off our PPOR loan totally. My parents are very happy to buy us out and increase their holding.
We will leave our loans ticking along, and perhaps look into building in the middle of the double block we hold. But probably wait until we feel comfortable with the way the economy is going.
We will leave our loans ticking along, and perhaps look into building in the middle of the double block we hold. But probably wait until we feel comfortable with the way the economy is going.
Another classic. Let's see obviously there's Paris Hilton, George W, Patty Hearst, Mark Thatcher, Bob Ansett And Justice Marcus Enfield.
Then theres Alan Bond, Chris Skase and that 80's mob, Local Hero Eddie Groves and a whole New York Street filled with financial geniuses who just got smarter as they got richer.
Yep being rich sure does make you so much smarter.
Not selling, happy with all purchases and never plan to sell off any in the future, aquisition costs are too high and my end goal is LOE
Still buying.
Still buying.
Hi Marg,
Have you had any financial advice regarding this?
We are also just beginning this process, and have had some initial indication that if we sell mum's house, the proceeds will be counted in her assets test, and also increase her daily fees.
But if we keep the house and rent it out, it is not counted towards either test.
Pen
We are well aware of the implications of selling mum's house and all factors have been taken into account.
The sale will not affect her bond, and her daily fees will increase by a percentage of the extra income from the investment of the house proceeds, which still leaves money accruing in the unlikely event mum needs it.
We have done the sums. Our crystal ball is a little cloudy regarding capital gains over the next few years. We do know that maintenance would be a big issue - value is mainly in the land.
Marg
The sale will not affect her bond, and her daily fees will increase by a percentage of the extra income from the investment of the house proceeds, which still leaves money accruing in the unlikely event mum needs it.
We have done the sums. Our crystal ball is a little cloudy regarding capital gains over the next few years. We do know that maintenance would be a big issue - value is mainly in the land.
Marg
We are looking at low care dementia specific. Most of them have an accommodation bond. but you don't have to pay it as a lump sum. You can basically pay it as an "interest payment" or a combination of lump sum and interets payment. The interest rates are fairly high, around 8.5% at the moment.
We are currently looking at one place, with a $350 000 bond, where we would pay around $500per week for the bond component of mum's fees, if we paid no lump sum. She has good rental income, so this is a much better option for us, and mum, than selling one or more of the houses.
Cheers,
Pen
I have never heard of being able to pay in instalments. That is interesting and something we will have to investigate as my dad will need care one day. I do know that my ex-neighbour moved into assisted care (mid-level) and was able to take a little while to sell her house before paying the bond in full. I wonder if it depends on the home whether they allow it or not?
Wylie, when my mum entered the nursing home the obligation to pay the bond commenced immediately. Any outstanding amount attracted interest at a set rate. We cashed her term deposits and paid around 60% of the bond within the first fortnight. We have chosen to pay the interest each month until her house is sold and then the rest of the bond will be paid off.
All nursing homes we spoke to had various arrangements to pay the bond - they all realise that most people don't have that sort of money ready to be paid immediately.
Marg
All nursing homes we spoke to had various arrangements to pay the bond - they all realise that most people don't have that sort of money ready to be paid immediately.
Marg
