I’m retired and sick of strata fees. Should I sell up and rent instead?

Is there a point in life where it makes sense to stop owning property altogether? I’m retired and live in a 20-year-old unit where rising strata fees and special levies are making it financially unsustainable. I’m considering selling and either buying a house (using more of my super), renting and investing the proceeds, moving to another unit or staying put.

I’m usually being asked how one can secure a home in a market in which affordability is challenging, so it is interesting to get your alternative perspective.

The costs that come with owning an apartment can quickly build up.Credit: iStock

I would start by getting an understanding of whether the age pension is a consideration for you. Your home is ignored for means-testing purposes, but if you sell, the proceeds will count towards both the asset and the income test.

The asset test does increase for non-home owners, but depending on where you live and the value of your home, that change may not create enough headroom to ensure your pension is unaffected.

Potentially this is acceptable to you, given you can now live off the proceeds from the sale of your unit, but you would certainly want to understand the implications before going down this path.

The two primary reasons why people seek to own a home is the security of knowing they’re not going to be asked to move once they are settled into a place and have built a community, and the challenge of ever-increasing rent.

Those rental rises may ease up a bit in coming years, given interest rates are coming back down, but, as you are experiencing with your unit, most other costs continue to rise for property owners. Property investors need to see an appropriate return, so rent rises are not likely to go away.

If it is unsustainable for you to remain in your current property, then clearly action is needed. If possible, I think you should explore moving to a lower-cost property that you own, but if this is simply not possible, then using your sale proceeds to cover rent expenses for the years ahead could work.

Assuming you qualify for the age pension, you should also receive some rent assistance, which might help, too.

My wife and I (both 61) are selling a jointly owned block of land that will trigger capital gains tax. I have maxed out my super contributions but my wife has some room via the catch-up provisions. I understand the gain is assessed in the year the contract is signed (eg June 2025), even if settlement occurs in the next financial year. Can my wife reduce her CGT liability by making a concessional super contribution from the sale proceeds after settlement?

She can offset her capital gains tax liability by making a concessional super contribution based on the information you’ve provided here but you would need to make that super contribution before June 30, and that relies on you having the cash available to make such a contribution before receiving the sale proceeds.

We see the same problem that you are describing for people looking to make charitable donations to offset capital gains tax liabilities as well. If at all possible, delay signing the contract of sale until the new financial year so that your receipt of sale proceeds and the assessment of the capital gains tax liability fall into the same year.

It’s always worth discussing your tax plans with your accountant, too. It’s their area of expertise.

Paul Benson is a certified financial planner at Guidance Financial Services. He hosts the Financial Autonomy podcast. Questions to: [e-mail]

• Advice given in this article is general in nature and not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

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