Do I have to sell my house when moving into aged care? 

Many people believe that you must sell your home before moving into aged care – whether it’s because they feel they don’t need their home anymore, they don’t want to manage a rental or because they need the money to move into aged care. 

It’s important to remember that every resident’s personal circumstances are unique, but it’s not always essential to sell your home. 

Understanding aged care fees

By understanding the cost of aged care on the Gold Coast, you can gain a better understanding of your financial position. Aged care fees generally include: 

Basic daily fee: This fee is updated by the government on 20 March and 20 September annually, and it’s paid directly to your chosen provider.

Means-tested care fee: Government subsidy covers this fee, based on your individual assessment.

Accommodation fee: Government subsidy also covers the accommodation fee, ensuring your loved one’s comfort.

Extra service fees: Not covered by government subsidy, these fees might apply for additional services.

Additional service fees: Similarly, these fees aren’t covered by government subsidies and could pertain to special services.

Learn more by visiting the Australian Government, Department of Health and Aged Care website. If you have any questions about covering the costs at HillView Care, our team is here to help. We understand that navigating payment options can be overwhelming, so we’re happy to guide you through the process and explain the various choices available. 

Deciding What to Do with Your Home Before Aged Care

When it comes to deciding what to do with your home when you move into aged care, you can lease it out or sell it. 

Lease it out: If you decide to rent out your home when you move into aged care, only part of the value of the house is considered an asset when calculating the means-tested care fee (what’s known as the home exception cap). This means that holding onto your house (above a certain amount) will not significantly impact the cost of your aged care.

You’ll also have the rental income to help you pay for the daily costs of aged care living. Sometimes this is the easier choice, especially if you’re attached to your home and not ready to sell it or pass it on to a family member. 

Unfortunately, if you lease out your home you will pay more if you pay a lump sum payment and get a lower aged care pension – because your rental income is counted in the means test. You’ll also need to look into the amount of income tax on the rental income.

Selling your home: When you sell your home you can use the proceeds of the sale to pay your aged care entry deposit, in full or part. This helps you to pay less in the long term and you’ll have more pension income, as the entry deposit is exempt from your means test. You may also then have the option to  invest any money you have left over to secure your financial position in the future. 

When you sell your home all the money you receive (after outgoings) is counted as an asset, so the means-tested fee may increase because your assets are higher. 

* This is just general information; for advice tailored to your specific situation, we recommend consulting with a financial advisor or aged care specialist.

When moving into one of our residential aged care homes on the Gold Coast, deciding whether to sell or lease your home is an important, and very personal choice that can affect your financial situation. At HillView Care, we understand the complexities involved. Selling your home can streamline your finances and potentially increase your pension income, while leasing it allows you to retain ownership and earn rental income.

Understanding how aged care fees work can help you make informed decisions. The staff at HillView Care are here to support you through this process. For personalised advice tailored to your needs, we recommend consulting a financial advisor or aged care specialist. /we are always available to answer any questions and provide guidance as you navigate this important transition.