If you choose to keep your house and rent it out be aware thatyou are subjected to a changing rental market. (Supplied: Edward Thomas) If you have some savings,you can use a combination of a lump sum and daily rental cost to pay for your entry deposit. the amount of lump sum deposit will not be counted as an asset in the pension means test.
People also ask
What happens to my pension if I rent out my home?
However, if you move out of your home into another residence and rent out your home, it would no longer be deemed your primary residence. Instead, it would be treated as an investment property with the value of the home assessed as an asset and any rent would be assessed against the income test of the pension.
Can I rent out my property to pay for care?
You can rent out your property and use all or part of the rental income to fund your care fees. This can be a good option if: your family is keen to keep the property, or if a quick sale would make it difficult to realise the property full value. In some cases, renting out your property may cover the full cost of your care.
Can I rent out my retirement flat?
Whether you can rent out your retirement flat will be according to the lease. Most leases will likely state you can rent out your retirement flat but that you may need to notify the owner of the freehold and potentially pay a consent fee. With retirement flats, there will also be restrictions on who the property can be rented out to.
Should you lease your home to pay for your pension?
For those that are open-minded to leasing their home, there may be some good news when it comes to your pension entitlements. You can obtain a one year temporary vacation from your home from Centrelink. This means you would still be considered a homeowner and your home continues to be exempt from the assets test (for a year).