Keep in mind you do not need to pay off the investment properties when you retire. You could simply maximise the amount of money you hold in super and withdraw sufficient each year to make the loan repayments.
We are both aged 68, working part-time but are keen to wind down even more. We have a house in the city worth about $3 million and super of about $1 million. Our combined employment income is about $100,000 a year. We have rented our city house and are renting a regional property, which was bought by our son as an investment. We rent the house from him for $650 a week and receive $1300 a week for our Sydney house. The arrangement is secure. We have a mortgage of $190,000 on the Sydney house, and two more equity loans for about $280,000, which we took out to help our children to buy their homes. We are happy with the move, but have we made a big mistake?
I think you have put yourself in a perfect position.
By retaining your city residence, you have six years from when you moved out to harvest any future capital gain free of capital gains tax.
Furthermore, by renting in a regional area, where you may decide to retire, you are giving yourself a feel of what retirement would be like if you decided to stay in that area.
I believe children should get a hand up – not a handout. Helping them now at a time when they need it most and when you will be around to watch them enjoy it is a great strategy.
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My problem is that my christened name is not the same as my known name….
