This can benefit people who:
- do not have sufficient funds to pay lump sum accommodation payment without selling former home
- have a former home that has a relatively low market value
- have a former home that will not generate sufficient rental income to meet aged care expenses
- have a former home that is not able to be rented without substantial repairs/renovations
- Selling former home may assist with paying lump sum accommodation payments
- Selling former home may provide access to capital to assist with meeting ongoing aged care expenses
- Selling former home may be less stressful for family members as they do not have to manage property
Things to be aware of:
- If sale proceeds are invested in financial investments (including making a downsizer contribution), they will be assessed as an asset subject to deeming which may reduce social security entitlements and increase means tested aged care fees
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Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It’s also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.