You will notice in the last Blog in the last paragraph, Steve predicted a large share price correction. This has indeed come true with the headline on last Friday’s (26/10/18) ‘Australian’ reading “super hit in $50bn plunge”. The Australian Business Review also had a front page article: “Rout triggers market correction.” Both articles list major stocks that have taken a huge plummet.
How much did some prominent Australians lose?
To put it in perspective, Australia’s youngest billionaires are Mike Cannon-Brookes and Scott Farquhar (Co-founders of Atlassian) lost close to a combined $1bn in one day. But $1 billion wasn’t their total loss. They have seen almost $3bn wiped off the paper value of their shareholding in the month of October.
Why the fall in Share Prices?
Apart from the general fall in share prices there was another major reason for such a large fall. Companies such as Atlassian were caught in the sell down of many big US technology stocks.
What about other better-known Australians?
Andrew “Twiggy’ Forrest from the Fortescue Metals Group lost about $225million last Friday. James Packer…
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…with his interests in Crown Resorts lost $116 million in one day.
How about the average Aussie?
What can they do to protect their super from losses on the share market? Steve admits he has a biased opinion here. That is: toward residential investment properties on Brisbane North Side. Purchase one of these well-researched, quality homes and set up a Self-Managed Super Fund. It does not have the volatility known to the share market. It is real Bricks and Mortar. You can touch it, you can see it – It’s real!
Qualifying for a Self-Managed Super Fund (SMSF)
So how much would you need in your existing super & income to qualify for one of these properties in a SMSF? It is possible to combine your super with that of your partner. A combined total in Super of $200k – $220k is required and an income of $80 – $120 P.A. This can vary relative to the employer’s percentage of contribution. Basic Employee contributions are 9.5%, but some employers pay up to 12.5% or more.
Need help to start your residential property investment portfolio the right way or want to discuss this more? Schedule a free, no-obligation consultation and let’s discuss your options.
If you prefer to listen here is my radio interview on Emerald 4HI:
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