Paying Off an Aged Care Deposit by Selling Property

on the Thursday, September 6, 2018

If you or your loved one are beginning to think about the move into residential aged care and are looking for the best ways to fund this, selling property may be an option for you.

Residential aged care can be paid for in a number of ways – via RAD (Refundable Accommodation Deposit), DAP (Daily Accommodation Payment) or a combination of both. The RAD can be paid at any stage, so selling property to fund the RAD can be a suitable strategy as it ultimately reduces (and in some cases eliminates) the DAP. The DAP is currently calculated at 5.96%.

Before selling property to fund the move into aged care, you should consider the approach that is best suited for you and your family and seek professional advice if needed.

You’ll need to weigh up your options and decide whether selling or renting out the property is the best way to fund the RAD/DAP. A good thing to keep in mind is that the RAD you pay is an exempt asset for pension purposes.

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