My husband and I do not have children because I had cancer at 29 years old. We are both 45 years old and have two properties – our old home in Melbourne and our home since 2017 on the Sunshine Coast. Each is worth around $ 1.2 million, with mortgages of $ 350,000 and $ 695,000, respectively. My husband earns around $ 100,000 a year and I earn $ 34,000. We have $ 200,000 in a mortgage compensation account and a combined $ 885,000 in superannuation. The Melbourne house needs about $ 60,000 in repairs, and we don’t know if we should fix it or sell it. If we sell, neither of us want to invest the extra money in the super, because we don’t want to wait until we are 70 to access it (and I might not live that long). Should we pay off the loan on the Queensland house and be mortgage free? TG

Difficult question, because I am generally not in favor of selling houses in a capital city.

Investment property needs $ 60,000 worth of repairs. Should the owner repair it or sell and pay off the mortgage on their house?Credit:Monique Westermann

However, given your medical history, I suggest that by selling Melbourne property at the height of a historic boom and wiping off all your debts, you could significantly reduce the stress on yourself. Stress, as you know, can contribute to recurrence of the disease.

With about $ 350,000 left, I would bide my time for a few years.

When interest rates rise, local units or apartments could become attractive investments.

I have $ 100,000 in the Westpac Balanced Growth Fund within BT’s Investor Choice program. I received a July distribution of 3,950 units, but the June 30 exit price was $ 1.4248 and the July 1 entry price was $ 1.3524. The end result of the lower prices was to reverse any increase in distribution. So basically I got 3940 units but no increase in dollar amount. Is this normal and expected? I plan to retire at 59 in 2022, while my husband will work another five years and retire at 62. I have $ 140,000 in Vicsuper and $ 32,000 in the Emergency Services and State Employees (ESS) fund. Am I able to transfer the $ 100,000 from BT to Vicsuper without being taxed? KK

Managed funds generally see their unit price increase as income accumulates in the fund, but then see their price decrease after a distribution.

If the value of the underlying assets of the fund increases, the value of your investment will increase.

You can cash out your non-super BT investment at any time, but you may have to pay capital gains tax if the investment has grown.