Advice on doing a Lap
Submitted: Saturday, Jul 31, 2010 at 12:11
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Andrea11
Hello everyone,
I'm just after some advice. I have a husband who is disabled and is on a Centrelink Disability Pension. I would really love to take him on a lap of Australia. I can hook and set up our Caravan on my own so that is not a problem. It is more about affordability. We own our
home and wondered if anyone out there rents theirs out and does this effect the disability Pension. I know this is probably a Q for Centerlink and I will make contact with them early next week. I just wondered if there was anyone else out there that was in our same position and what it is they do to be able to afford to do the Lap.....
Thanks in advance to you all..
Andrea
Reply By: Motherhen - Saturday, Jul 31, 2010 at 12:37
Saturday, Jul 31, 2010 at 12:37
Hi Andrea
Good on you - find a way to do it. Lots already are.
I would not rent out my own
home, other than to trusted close family. If i was selling to finance the rig, i would buy a 'rental property' first, but never rely on rent to make loan payments, and allow for the fact that the occasional tenant can trash the house. That would however, give you some real estate security to sell and set up again after the trip.
On the road living may be a bit dearer due to higher costs of fuel and food in remote areas, and the fact that you can't bulk buy to make savings like you can when at
home. Otherwise it will be similar or sometimes cheaper (eg no electricity bills).
Costs are what you make them. How far you travel in a day, how long you stay in one place, whether you
free camp a lot, whether you go to a lot of
places with entrance fees or take cruises and flights for sight seeing.
Try and set aside an emergency fund so you are not stranded with a major
breakdown, or you can fly '
home' in case of a health or family emergency.
Ask Centrelink again and again. You just may get different answers.
Enjoy this wonderful land.
Motherhen
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Follow Up By: Andrea11 - Saturday, Jul 31, 2010 at 12:43
Saturday, Jul 31, 2010 at 12:43
Thanks Motherhen,
Luckily we already have the caravan and 4wd so don't we don't need to worry about set up costs, and we are able to
free camp where ever we go. I just wondered if it were possible to be able to rent our
home to cover our travelling expenses along with still being able to collect the Disability Pension......Last thing I would like to do is get into trouble in this area...
FollowupID:
696341
Follow Up By: Motherhen - Saturday, Jul 31, 2010 at 12:54
Saturday, Jul 31, 2010 at 12:54
Rent is income, so as you say, you need to clarify your position thoroughly with Centrelink first. If you get advice from others, their circumstances will be different to yours, and the advice may not be correct for your situation.
My personal bias against renting my own
home comes from my experiences both renting out property and from working in rental property management. Unless you are prepared to put up with extra wear and tear and maintenance costs, and willing to re-furbish (paint, window treatments etc) when you return, you may be in for a shock that most tenants do not look after and maintain a
home as you do your own (even good tenants and with the best of property managers). Some people have good stories to tell, but on the law of averages, i would not rent out my own
home other than to trusted family members.
Mh
FollowupID:
696342
Follow Up By: Maîneÿ . . .- Saturday, Jul 31, 2010 at 13:01
Saturday, Jul 31, 2010 at 13:01
from the experience of a close friend here, I would first phone your local Centerlink office, ask to make an appointment with someone who specializes in the field you will need the answer in.
They had two different answers from two different people in same Centerlink office.
Lost money, then had it restored, unaware of their situation in full, so won't claim anything here.
Maîneÿ . . .
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Follow Up By: Motherhen - Saturday, Jul 31, 2010 at 13:12
Saturday, Jul 31, 2010 at 13:12
Very wise advice from Mainey.
Mh
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Follow Up By: Andrea11 - Saturday, Jul 31, 2010 at 13:21
Saturday, Jul 31, 2010 at 13:21
Thanks everyone,
Was just curios I take the point and will make an appointment with centrelink outlining our position. Your all a wonderful group of people with great advice on many different topics and I for one appreciate all the information and help you have given to not only myself but to other green horns like me...
Warmest Regards
Andrea
FollowupID:
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Follow Up By: Cliveg - Saturday, Jul 31, 2010 at 18:05
Saturday, Jul 31, 2010 at 18:05
when you visit Centre Link, get it all down in writing with an official stamp, they have a habit of loosing or forgetting what they say
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Reply By: roberttbruce - Saturday, Jul 31, 2010 at 13:17
Saturday, Jul 31, 2010 at 13:17
Plan for shorter way points ... Fuel is the biggest cost, everything else stays pretty much the same...
If you don't need to eat a thousand kilometers of tar a day you may be able to afford it without the need to rent your
home....
AnswerID:
425822
Reply By: petengail - Saturday, Jul 31, 2010 at 18:37
Saturday, Jul 31, 2010 at 18:37
as i am in a similar situation. ie we own our own house and i am on a disability pension i would be very interested to hear the outcome. i fear though that centrelink will take the rent as income and adjust your pension accordingly. could be wrong though. hope i am. cheers. and as for renting houses out - we lived overseas for about 13 years at four different times. rented out house out and never missed a rental payment. worse was one time the lawns were let go. still must have been lucky knew plenty who were not so lucky.
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Follow Up By: DanziM - Saturday, Jul 31, 2010 at 21:05
Saturday, Jul 31, 2010 at 21:05
Remember that centrelink will see your now rental property as an asset and will not exempt it like asif you were living in it. Also like above said rental income will also come into effect. So you may now be deemed to be assessed under rthe asset tent rather than income.
Remember that Centrelink always offers you the more favourable outcome, so dont worry you'll be fine aslong as you declare everything correctly.
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Follow Up By: Motherhen - Saturday, Jul 31, 2010 at 22:12
Saturday, Jul 31, 2010 at 22:12
There MAY be a period of time that they allow absence from the
home before considering it an investment property.
Mh
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Reply By: nickb - Sunday, Aug 01, 2010 at 00:00
Sunday, Aug 01, 2010 at 00:00
So am I right in saying you want to go on a tax payer funded trip around Australia?
[This response is not a personal attack, not meant to be offensive, nor do I have any information on your personal circumstances, not that your circumstances(disability/race/age/sex and so on) should make any difference to the reasoning behind this decision]
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Follow Up By: petengail - Sunday, Aug 01, 2010 at 05:52
Sunday, Aug 01, 2010 at 05:52
this isnt personal either nick but wouldnt your post include every pensioner out there?
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Follow Up By: OREJAP - Sunday, Aug 01, 2010 at 10:54
Sunday, Aug 01, 2010 at 10:54
nickb, And your point is? So if I am a pensioner & not travelling I am OK to be funded by the tax payer if I stay at
home,drink beer,smoke ciggies & do nothing!!! Is that OK by you? I was in the work force for 45 years & yes, I paid tax (and still do) I think you are opening up the proverbial can of worms with comments like you have posted. If people are given benefits by OUR laws & legally entitled to them then they are within the rules so, what is the problem?
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Follow Up By: nickb - Sunday, Aug 01, 2010 at 12:38
Sunday, Aug 01, 2010 at 12:38
My parents sold their house to fund their trip as they didn't want to rely on the pension. I plan on doing the same when the time comes.
Obviously others do it differently.
As long as your happy go for it. I was just wondering.
"Why don't you sell the house to fund your trip" may have been a more appropriate question.
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Follow Up By: Andrea11 - Monday, Aug 02, 2010 at 10:57
Monday, Aug 02, 2010 at 10:57
Nick I was in no way suggesting that the Tax Payer should fund our trip...The point of the Question I asked was if Centrelink see you as renting your house out does it consider it to be income. The short answer to this is yes....That is fine by me.
As for selling our house the answer there is no I wouldn't want to spend the money from the sale as it would put more of a burden on Public housing when the trip was done.....and I wouldn't want the tax payer to fund that either for us..
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