March 31, 2016

What to do with the family home when entering aged care?

This is a crucial question for those people about to enter residential aged care, especially in light of the change to the treatment of the rental income for new aged care residents after 1 January 2016. With the median price of homes in Sydney now around the $1 million mark, many people looking to enter aged care will be faced with a difficult choice on what to do with the family home. Many of these homes were built over 50 years ago, and are in varying states of repair. Often they are still occupied by the original owner/s and based […]
March 17, 2016

No such beast as an ‘SMSF-qualified’ property

For instance, Australian Securities & Investments Commission (ASIC) recently raised concerns about the marketing of properties as “Self Managed Super Fund (SMSF) qualified” and “SMSF friendly”. The regulator is understandably concerned that the promotions suggest that a category of property exists that is particularly suited to SMSFs. There is, of course, no such category of property. Whether a piece of real estate is an appropriate investment for an SMSF much depends on the circumstances of the fund and its members, whether the property is a worthwhile investment and, critically, a fund’s mandatory investment strategy. Further, SMSF trustees should only accept […]
March 10, 2016

How to make friends with your credit card

The Thailand package was only $500, but Simon, having just paid his car rego was broke so he decided to pay for it using his credit card. However, after adding airfares and travel insurance his credit was maxed out before the plane left the ground! Simon’s situation is common. We easily justify using credit for things we know we shouldn’t, but temptation is cruel, often irresistible. According to “Using credit cards allows you to do things and see things and experience things that you really have no right to be able to.” Once in Thailand, Simon had to pay […]