Should we pay off our ip and super questions?

Discussion in 'Investment Strategy' started by pauljm, 18th Nov, 2017.

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  1. pauljm

    pauljm Member

    Joined:
    18th Nov, 2017
    Posts:
    16
    Location:
    NSW
    Hi all,
    Not sure if i have posted this in the right section but here it is anyway. Thanks in advance for any help we need to make some decisions on this within a week...

    *Our investment property generated an income of approx 5k last year- it rents for 510 pw and we owe $190k
    *We are thinking of paying principal and interest on the 190k we owe on it.
    *We own the house outright that we live in.
    *We have approx 40k in the bank and no other debts. Our current spend enables us to maintain this 40k easily.
    *We have approx 20k in shares
    *I have 200k in super and partner has 120k
    *I estimate i will earn approx 100k in my full time job with payg tax.
    *My wife is a full time carer for our 3 year old daughter who will be attending pre school (private) next year and we have no other dependants.
    *We are both in our late 40's.
    *I would like to retire before age 65.

    Ok so given all of the above, we are looking at some options but need clarification on things.
    *We are looking at going to p and i on the ip with the aim of paying it off before retirement. Is this wise?
    *Is it possible to transfer the title of the ip into my wife's name so that all of the income generated comes under her income? Or is there another way to do this legally?
    *We are looking at putting extra super from my pay to her super account to be eligible for the $540 rebate. Does this need to come straight from my pay or can it simply be transferred from our dual bank account or how does it work? Needs to $3000 to get the rebate but $3000 from where?
    *We are also looking at investment bonds for our daughters education expenses but are unsure where to start.
    *Do you know of any other ways we can reduce our tax?
    Thanks again if anyone can help?
    Paul
     
    pauljm, 18th Nov, 2017
    #1
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  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
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    PI may be wise as you will be getting a lower interest rate.

    Yes you can transfer to wife but stamp duty, cgt and loans need to be considered. Might be costly. An alternative may be to buy another property solely in wife's name and divert income and savings to this.

    Heaps of other ways to save tax.
     
    Terry_w, 21st Nov, 2017
    #2
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