When is the best time to sell - before or after I retire?

Answer

Whether you decide to sell your home or your investment property before or after you retire will depend on your own needs and circumstances.

But thinking ahead and speaking with a financial adviser can help you make the most of your opportunities and avoid any unexpected financial implications that may affect your tax obligations and age pension entitlements.

When you sell your home, some of the implications can involve:

Taxation

  • no capital gains tax will apply if it’s your home but if you sell an investment property you’ll generally have to pay capital gains tax.

Superannuation

  • you may be able to save tax by investing some or all of the proceeds of the sale of your house in super before and after you retire. Depending on your age you may be able to take advantage of the non-concessional super contributions cap which allow you to make after-tax contributions of up to $540,000 over three years if you’re under 65. You can invest $540,000 in one lump sum if you use the bring-forward rule which allows you to invest three years’ after-tax contributions in one year

Centrelink

  • the sale of your home is likely to affect your age pension entitlements under the assets test and, depending on how you invest the proceeds or even if you rent out part of your home, the income test too. You can find out more from the Department of Human Services.

Other considerations

There may be other financial, practical and emotional implications relating to:

  • preparing your home for sale
  • selling your property
  • finding, evaluating and buying another property
  • planning for and reaching your needs and goals.

 

Important information

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It’s important to consider your particular circumstances and read the relevant Product Disclosure Statement or Terms and Conditions before deciding what’s right for you. This information hasn’t taken your circumstances into account.

This information is provided by AMP Life Limited. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice.