Are you really with the one you love

[ManilaBae]

6 hours ago, Ynot said:

Im Australian and not yet retired, so do not have access to my super yet, I have two super accounts, one of which I voluntarily contribute to and that is the one I intend to use to build the house etc, but I can not access it until I retire.   

Have you checked you superannuation components in your superannuation account? You can access your superannuation if you have unrestricted/non-preserved components, and its best that these components are tax-free. Otherwise, you need to meet a condition of release (retirement declaration, turning 65 (non-gainfully employed), financial hardship, having a terminal illness or death) to enjoy a tax-free pension or lump sum payments.

[robert k]

2 hours ago, ManilaBae said:

Have you checked you superannuation components in your superannuation account? You can access your superannuation if you have unrestricted/non-preserved components, and its best that these components are tax-free. Otherwise, you need to meet a condition of release (retirement declaration, turning 65 (non-gainfully employed), financial hardship, having a terminal illness or death) to enjoy a tax-free pension or lump sum payments.

I had a related thought when he said his retirement money was going to pay for the house. Interest rates in the Philippines are high and I don't even know if you could get a loan to build as there would be no collateral until the building was completed. The land title would have to go through the most thorough rectal exam possible too before the bank would feel comfortable. I suppose they could do as others have done, rent someplace and build a little at a time as money becomes available/ or build a native house on site and rough it a few years until the house is built.

Edit, maybe he could get a lump sum from his voluntary account, I don't know how that would work in Australia.

Edited March 16, 2016 by robert k

[frosty (chris)]

7 hours ago, Kuya John said:

 

and after that you can listen too

Stephen Stills - If you can't be with the one you love, love the one your with

Edited March 16, 2016 by frosty (chris)

[ManilaBae]

1 hour ago, robert k said:

I had a related thought when he said his retirement money was going to pay for the house. Interest rates in the Philippines are high and I don't even know if you could get a loan to build as there would be no collateral until the building was completed. The land title would have to go through the most thorough rectal exam possible too before the bank would feel comfortable. I suppose they could do as others have done, rent someplace and build a little at a time as money becomes available/ or build a native house on site and rough it a few years until the house is built.

Edit, maybe he could get a lump sum from his voluntary account, I don't know how that would work in Australia.

I wouldn't take a loan in the Philippines as the lending interest rates are high. Agree with you that much of the effort should be directed to due diligence, and instantly killing opportunities that might present negative risk(s). Renting in various parts of the Philippines makes sense to me, as its easy to uproot if the place isnt doing anything for you. However, if you decide to build roots in a particular place, and your rigorous due diligence passes your standards then Id commit to a land purchase and building a proper home. I prefer building a proper home over a native home because building materials and labour increase in value over time. Id rather lock in the present cost now, and hopefully, enjoy some capital appreciation when the house construction is complete.

As for lump sum withdrawals from his superannuation account, he can access some super funds if he hasnt met the condition of release so long as he has unpreserved/non-restricted tax-free components available in his balance. Otherwise, best to wait til his retirement to access as this is tax-free. An alternative is to apply for an equity loan against the OP's primary home or investment property, so long as he has enough equity in place.

[robert k]

29 minutes ago, ManilaBae said:

I wouldn't take a loan in the Philippines as the lending interest rates are high. Agree with you that much of the effort should be directed to due diligence, and instantly killing opportunities that might present negative risk(s). Renting in various parts of the Philippines makes sense to me, as its easy to uproot if the place isnt doing anything for you. However, if you decide to build roots in a particular place, and your rigorous due diligence passes your standards then Id commit to a land purchase and building a proper home. I prefer building a proper home over a native home because building materials and labour increase in value over time. Id rather lock in the present cost now, and hopefully, enjoy some capital appreciation when the house construction is complete.

As for lump sum withdrawals from his superannuation account, he can access some super funds if he hasnt met the condition of release so long as he has unpreserved/non-restricted tax-free components available in his balance. Otherwise, best to wait til his retirement to access as this is tax-free. An alternative is to apply for an equity loan against the OP's primary home or investment property, so long as he has enough equity in place.

In the US I think one could convert IRA funds to buying a home as a retirement investment but I don't think they would go for buying a house in a foreign country, especially a home not in your name.

Edited March 17, 2016 by robert k

[Gerald Glatt]

2 hours ago, robert k said:

In the US I think one could convert IRA funds to buying a home as a retirement investment but I don't think they would go for buying a house in a foreign country, especially a home not in your name.

Your $$  Once you turn 59.5 tears old you may take as much or as little from your IRA as you wish.  Take it anywhere you wish. Spend it however you wish.  Depending on the type of IRA the funds may or may not be taxable.   Ain't American grand.

[robert k]

14 minutes ago, Gerald Glatt said:

Your $$  Once you turn 59.5 tears old you may take as much or as little from your IRA as you wish.  Take it anywhere you wish. Spend it however you wish.  Depending on the type of IRA the funds may or may not be taxable.   Ain't American grand.

Thanks. I have about a decade, possibly longer to bone up on the IRA rules. Right now my main concern is making trades to avoid capital gains tax.

[Gerald Glatt]

10 minutes ago, robert k said:

Thanks. I have about a decade, possibly longer to bone up on the IRA rules. Right now my main concern is making trades to avoid capital gains tax.

You may use my tried and proven method...........Buy high sell low.  Repeat until broke.     Free  advise and well worth the price.  Heck if you follow it you couldn't afford to pay me........Unless you were a government. 

[Ynot]

14 hours ago, ManilaBae said:

Have you checked you superannuation components in your superannuation account? You can access your superannuation if you have unrestricted/non-preserved components, and its best that these components are tax-free. Otherwise, you need to meet a condition of release (retirement declaration, turning 65 (non-gainfully employed), financial hardship, having a terminal illness or death) to enjoy a tax-free pension or lump sum payments.

Yes I can access my super next year when I retire at age 60, the tax I must pay is 15% on that part that has not already been taxed.  And if i Put the super in a complying superfund, then there is no tax on the income it earns which is paid to me.

Once I'm 60, I will have access to both super accounts - lump sums, the smaller lump sum which is the one I am voluntarily putting into I will use to build a house, no loans.

 

Edited March 17, 2016 by Ynot
expanding on explanation

[ManilaBae]

10 minutes ago, Ynot said:

Yes I can access my super next year when I retire at age 60

Once I'm 60, I will have access to both super accounts - lump sums, the smaller lump sum which is the one I am voluntarily putting into I will use to build a house, no loans.

 

Great, it seems like you're sorted then. Good luck and I hope it all works for your :)