Not many people know that It can be a big disadvantage going past age 70-75 with alot of wealth/ assets.
Lets be honest the BB's are not getting any younger. An increasing number of older people are needing to sell their home because they need the bond for entering a hostel or nursing home. I am seeing this nearly every day- They are not eligible for a government subsidised bed because of the asset. If they were smart tey would sell te home first and give the cash to the kids thus being eligible for a government funded bed. This very rarely happens howver, pls the fact that government funded beds are more scarce and less available than a full bonded bed. A charge is applied and then a annual amount is taken from the bond each year.
So depending on length of time in hostel or nursing home, teirs often not alot left for the kids. If the person is way beyond impairment and have no family, the state trustees will often step in and do the selling of house on behalf of the person.They how it goes and that's where the money is going. So, at the end of the day, be good to your kids; they will probably be the ones choosing your nursing home. With such an aging population, expect plenty of houses to be put on the market of the next 10-15 years and beyond.
If their was one investment class of properties I would recommend for you all for the long term if looking for yield ROI rather than cap gains, it is nursing homes or hostels. Not that most here could own or build 1, you can however invest in them by the sharemarket.
