With the recent interest rise, why this isn't possible to pay off the HECS debt with super?
We can buy home with it but not pay the HECS?
Would you use your super to pay it off if had an option?
Paying off HECS with Super?
newbiesh on 08/05/2022 - 00:54
Last edited 08/05/2022 - 11:30 by 1 other user
Last edited 08/05/2022 - 11:30 by 1 other user
Comments
^This
HECS is the cheapest debt you'll ever have.
Only repay if you had nothing to put money into.Almost always super return will be greater than HECS index rate.
Why would it , the interest rate increase is way less than what the predicted index rate will be this year. And the changes in rate were very recent.
And you are comparing paying off debt to purchasing a (historically) appreciating assest.
If I had the option, yeah, but that's just because I prefer not having debt , it's in no way a wise financial choice for the majority of cases.
Phhfftt buy crypto with super and HODL. Haven't you learn anything from rekt?
NFTs are where the big money is
so ETH?
we can buy home with it but not pay the HECS?
Far out, you can't buy a home with super, where do you people come up with this stuff?
Maybe OP is mixing up the FHSSS with paying off the home with super. You can also buy property with self managed super fund except you not supposed to live in it.
Maybe OP is mixing up the FHSSS with paying off the home with super
Yes, like many others, can only read headlines, and has no idea about how it actually works.
You can also buy property with self managed super fund except you not supposed to live in it.
That's not a home, that's an investment, and you are very much not allowed to live in it.
You can contribute up to $30k of your super towards a first home purchase (soon to be $50k). How is that not "can buy home with it".
You can contribute up to $30k of your super
No, you can't. Educate yourself - https://www.ato.gov.au/individuals/super/withdrawing-and-usi…
you can through a SMSF…
Again, that is an investment, and you are not allowed to live in it.
The way to play this is to keep your income below the threshold so that you avoid paying back the student loan.
Set up LLC or PTY preferably in a tax-free or low-income tax jurisdiction. Use that entity/entities to trade and/or bill for goods and services.
Keep as much 💵 in the LLC/PTY and/or hard assets in the low tax jurisdiction to reduce tax liability in the high tax jurisdiction.
Don't pay wages or pay just enough to cover everyday expenses. Pay as little as possible into the pension fund or avoid it all together. This allows the cash to be accessible for investing rather than being locked away for 40Y under someone else's control.
Move to a different country for retirement when ready and enjoy a 😁 ending.
Following - this is good tips 🧐
@rekt back to OP - how would one pay off HECS with your arrangement? My assumption is that it would still need to be paid off in individual income/savings?
Can a PTY pay on behalf of individual owner directly to HECS, or do some sort of capital deduction/payment to owner, therefore allowing individual to do whatever with the payment?
How can you buy a home with super?
You setup a SMSF and then illegally buy the house and rent it out at $1 per week
The first home super saver (FHSS) scheme allows you to save money for your first home inside your super fund. This will help first home buyers save faster with the concessional tax treatment of superannuation.
First Home Super Saver Scheme – increasing the maximum releasable amount to $50,000
FHSS 📢 like a Ponzi scheme to pamp the pension funds.
Pamp $50,000 times +10,000s of 👷.
Please explain how this is a Ponzi scheme?
A Ponzi scheme is one where you need new investors money in order to paid out older investorsthis scheme you don't need new investor, anyone who is eligible can join save a bit of tax via super
then cash out and put in a deposit for the house.your money is safe and regulated by the government.
oh but that just non-sense right? I don't want government control and regulations just trade crypto
No, because HECS is just indexed, there is no ‘interest’.
https://www.ato.gov.au/Rates/Study-and-training-loan-indexat…
Super gains cumulative interest. It makes no sense to do what you are suggesting.
You pay off HECS progressively through your tax - on a bad financial year you wouldn’t make a payment - and depending on your situation you can defer the repayment for that financial year
Super based housing schemes barely helps buy a home, super barely helps with much else then a safety net for the government to not pay everyone a full pension