Hi all,
I was just replying to this post and thought I'd start another regarding Super funds in general.I'd be interested to hear how fellow property investors approach Superannuation and their reasons.
Do you contribute a decent amount to a recognised fund so you don't have all eggs in one basket?
Do you contribute the minimum required to a fund and pump as much as possible into property?
Do you Self Manage (SMSF)?
etccheers,
—
MarkMy approach to Super has been quite negative, in fact I have not invested in super at all and have put all my money into property. Reason… simply because by borrowing 90% (leveraging) I can build the overall size of the asset greater than any other asset class and the size of the asset determines the return on the investment. We all have our quirks I guess and this strategy may not suit others, that's fine. I'm happy to have all my eggs in the property basket.
Hi Mark,
The usefulness of super depends on your age and investment horizon, as well as other factors such as your current net asset position and income. It is a lower tax environment for many people and there are numerous startegies that can be used, which include placing money into super, either deducted or non deducted, which can lead to very substantial tax savings.
Regards
AlistairThere will be alot written this year about the advantages of buying property within your smsf (sure you can now borrow for equities or property).
Super allows you to quarantine profits and pay only 15% tax, sometimes less on the entire profits (fund income) and as an added bonus the income becomes tax free once you 'retire'.
See a decent accountant/tax planner for all the info before jumping either way.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
