Seems to have been some media talk about this lately but I always just miss it
I gather the jist is that super funds are not performing as well as property at the moment and so people are self managing funds to invest in real estate.
Would you cash in super funds to purchase an IP? If so what sort of ratio of super to property would you look at?
Links to articles online would be appreciated.
Cheers
CazCaz,
I too have been wondering this recently given the poor performance of super funds. I currently salary sacrifice $170 per fortnight ($4,420p.a.) to an employer super fund and have just cancelled this and instead redirected these fund towards the outstanding balance on my PPOR mortgage. This will effectively guarantee me a return of 6.5% tax free and at the same time provide greater equity to then leverage into property investment. The advantage of using property as a tool for financial freedom is that you can use leverage and start at a higher base than if only using your contributions to a super fund.
Damian
Caz,
Remember that Super is just a vehicle for carrying various assets classes for investment, just because most super is in shares and so it is not doing well, you can usually choose to have your super in property trusts instead, which is easier and cheaper than using DIY super funds and all that they entail in administraion rules and time
Richard
Hi Caz,
just been thinking about your statement. I attended a presentaiton by Russell Woodrow a couple of weeks ago (http://www.woodrowandassociates.com/index.html). He mentioned that property and shares (ie most super funds) work in cylces. That is, when shares are down, property tends to head to up, etc etc.
I’ve sat down with him a couple of times. He listens to what your needs are – therefore no template solutions. Have a look at his website and read some of his articles.
usual disclaimers – I’m a client of his, so I’m not benefiting by writing this.
regards
Marco
PS – bearing all of the above in mind, a positively geared property should always be making money – regardless of cycles.
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