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  1. #31
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    I agree @VicPark. The point of ammassing assets is to be able to support yourself in old age - not expect the taxpayer to do it so you can gift your assets to your children when you pass away. Its a bit like double dipping IMO.

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  3. #32
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    I think its fair. The family home is exempt so no one is going to be forced to sell the house they live in and move to renting. If these changes cause someone to lose the pension they will still be given a health care card for cheap medicines.

    With the price of housing these days, someone could have a family home of $1,000,000 and investments properties of $750,000 - so all up $1.7 million in assets and still be receiving a part pension. That seems very generous to me when you look at how other welfare recipients are treated.

    Bottom line - the country doesn't have limitless piles of money to give out. I think this change is reasonable.

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  5. #33
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    I have a question. What if you own a home and an investment property that puts you over the asset limit, put the investment property on the market but it doesn't sell? What do you live on in the meantime?

  6. #34
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    Default Cuts to aged pension re assets - agree/disagree?

    Quote Originally Posted by amyd View Post
    I have a question. What if you own a home and an investment property that puts you over the asset limit, put the investment property on the market but it doesn't sell? What do you live on in the meantime?
    If you can't sell an investment property in this current market it means you're asking for too much money. In this case, you would reduce the asking price.

    ETA - if the changes from 1st January mean that you will lose the pension and therefore have no money to live off (unlikely if you ask me - but possible), then you still have several months between now and then to plan ahead to sell..

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  8. #35
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    Quote Originally Posted by witherwings View Post
    If you can't sell an investment property in this current market it means you're asking for too much money. In this case, you would reduce the asking price.

    ETA - if the changes from 1st January mean that you will lose the pension and therefore have no money to live off (unlikely if you ask me - but possible), then you still have several months between now and then to plan ahead to sell..
    What about farmland? That can take years to sell. And if you have a mortgage on it would they really force you to sell it for less than what you owe?

  9. #36
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    Are you talking about farmland that you live on or an investment property?

    All investment properties can be sold one way or another. It depends on the price. If you have a mortgage on the property, it's not going to be more than the market value, due to commercial property lending criteria. Furthermore, if you're so destitute with this rural property that you can't afford the mortgage because it's not generating enough income, losing the age pension is the least of your concerns. It's bad investment that you are better off getting rid of

  10. #37
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    My parents don't get a pension so I have no vested interest in this. I do know superannuation is a complicated mess in this country and they have lost so much money while various governments figure it out over the years.

    What happens when people sell their properties? Are they just expected to put the money in the bank and live off that? What if they run out? Then they get a measly pension?

    I struggle with this as I don't believe the vast majority of pensioners hold their properties (investment) because they want to hand them down. It's because they generate an income which supplements their pension and helps them live.

    What honestly will the Turnbull's governments achievements be? What positive outcomes can they point to? What do they stand for?

    I'm not asking this for an argument. I genuinely don't know anymore.

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  12. #38
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    Quote Originally Posted by Sonja View Post

    What happens when people sell their properties? Are they just expected to put the money in the bank and live off that? What if they run out? Then they get a measly pension?
    What is the alternative? Keep the property and live off the rental income? Great! Then you don't need a pension. Hold onto the property until your death? Ok sure, your kids will thank you for it.. But why should you get government assistance so that your kids can inherit your assets?

    My grandparents-in-law haven't got a single asset to their name. They don't have savings of any kind (aside from cash they keep under the mattress - no joke). They live in government housing and they have a carer who comes a few days a week to help them with grocery shopping and cleaning. They have awful health and they get, what,$35k per year between them from the government? It's kind of hard for me to feel sorry for people who might lose their part-pension because of the changes in legislation when they are doing so much better than people like my DH's grandparents.

    But even if I didn't have family in this situation, I still don't think it's so unfair to have an asset test to be eligible for the pension.

    I'm not saying the system is great - it's not. And $35k for a couple is an absolute joke. But too many people cry "poor" when they aren't poor! They don't know what poor is. They don't have a clue what it looks like. If you own assets of over $550k on top of owning your home and you are angry about getting your pension entitlements axed, you are seriously out of touch.

    In answer to your question - yes. They should sell their assets. Once they run out of money they can buy a reverse mortgage on their home so they can comfortably live off an income ****** until they die.

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  14. #39
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    I guess my point is.. The people who are going to be affected by the changes actually have *choices* that many others in society don't and will never have.

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  16. #40
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    Quote Originally Posted by Sonja View Post
    My parents don't get a pension so I have no vested interest in this. I do know superannuation is a complicated mess in this country and they have lost so much money while various governments figure it out over the years.

    What happens when people sell their properties? Are they just expected to put the money in the bank and live off that? What if they run out? Then they get a measly pension?


    .
    My in laws when they retired sold all but one of their investment properties and are self funded retirees and yes set up a plan to "pay" themselves a weekly income from the profits as they obviously wouldn't be entitled to a pension , the low interest rates don't help but they are both 70 and will have easily enough for the next 20 years plus their family home and assets - they planned it this way as I believe a lot of people have in that age range around here - their family homes in my area are easily worth between $1-2 million and they obviously didn't know that 40 years ago when they bought them but the majority of my vendors who sell , own their homes outright and retire out of Sydney or into retirement homes and usually have a decent amount left to live on - but obviously you have to be smart about it -
    Most of my landlords also plan to sell their investment properties when they retire to do the same thing

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