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Monique T.
Monique T.
Wangara Dc, WA
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Q:

I am moving to South Africa, but i have an investment property here im renting out, is there anything i can do to retain as much of my superannuation so that it doesnt dwindle down to nothing while i wait to be retirement age?? will i have to make contributions to a super there as well?

last week

Responses

Hi Monique,

Your superannuation should continue to grow without you making contributions, if it isn't, something isn't right. If you have significant fees or insurance premiums that are dwindling the balance, then you may want to review that.

Your rental property income will be taxed as a non resident, however you may have deductions (interest on debt and any other expenses), but, if you still have positive cash flow, you may want to look at making tax deductible contributions to superannuation. That will reduce the tax payable by you and also boost your superannuation.

I am unsure of the SA "superannuation" system, but they might have a retirement scheme that you need to contribute to whilst there.

Cheers

Glenn

last week

Hi Glenn,

Thank you for your answer, i went to work in London for 4 years and in that time my Superannuation went from $24,000 down to $2000. They said due to me not making contributions they charged me fees. So i dont want that to happen again.

Is there not high fees if you dont make contributions?

I dont think i will make a profit on the house as rent will only just cover the interest on loan and council & management fees.

Comments

Hi Monique,

That is a big reduction, possibly due to a combination of poor market returns, high fees and insurance premiums.

The fees shouldn't be any more if you aren't making contributions. Perhaps seek out a financial adviser to give you a very basic review to make sure it is in an appropriate fund, invested appropriately for you and any other costs such as insurances are also appropriate.

Cheers

Glenn

Hi Monique

I'm not a financial planner, but I really like Glenn's answer. Specifically in dealing with any potential surplus income from the rental property.

I can't offer any personal advice. However if you would like to discuss this with a Financial Planner in Perth before you leave, I'm more than happy to introduce you to a local planner. They have a lot of experience providing advice with clients moving between SA & AUS.

Cheers

Casey

last week

Hi Casey,

Yes that would be great thanks!

Hi Monique,

There should be such an amount in fees as to reduce from $24k to $2k in four years. Per Glenn's comments, poor returns (possibly high risk portfolio) and insurance premiums should be the main issues.

Depending on when your UK trip was, market has changed and fees have generally reduced with the industry funds etc. but you will certainly need to speak to a financial planner.

Rental property will still be taxable, and depending on the expenses (depreciation, interest) may not have too much concern (negative to neutral gearing). If positive, tax will apply at 32.5% until $87k.

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