Super Contributions, Shares or Invest in Property?
Why would I invest in property instead of shares or increased super contributions to build wealth?
Following the market upheavals since England voted to leave the European Common Market, I have a series of questions from a listener to my radio segment on Emerald 4HI.
An answer to the first question above.
If you are into shares, now would appear to be a good time to buy as markets overreact in times of fear, but in the long term, you are still better off investing in property than shares. Why?
The next question is, “why not increase super contributions to my Superannuation?”
Unless you set up a Self Managed Super Fund (SMSF) to build a property portfolio, I would not suggest contributing more to Super. Why?
The Government keep changing the rules and generally you can’t access the funds until retirement. Most Superannuation is invested in share markets and accordingly, most Superfunds have again suffered heavy losses in recent days. Most people wouldn’t realise how much the value of their super has gone down in the last few days. At Steve Taylor & Partners we talk with clients about “real Superannuation” as in real bricks and mortar that you can see, touch and feel. Houses are real and they do not disappear with the click of a computer mouse.
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This leads into his next question. “What is your opinion on building a property portfolio in a Self Managed Superfund?”
There are definite advantages with setting up a Self Managed Superfund to build a property investment portfolio.
A brief overview
Most people are now aware that in future years they are unlikely to get their Super in a lump sum on retirement, but as a form or pension so what can they do about it?
Can you sell it before retirement? Yes, you can but why would you? It is surprising the size of the property portfolio you can build up by buying and accumulating rather than buying and selling.
So, ask yourself, what would you prefer something tangible and solid or something that can disappear with the click of a mouse? I know what I would prefer.
If you are interested in enquiring about buying property to start your Residential Property Portfolio, please contact our office to schedule a free, no-obligation consultation.
Steve Taylor
If you prefer to listen here is my radio interview on Emerald 4HI:
DISCLAIMER
Steve Taylor & Partners blog is opinion and not advice. Readers should seek their own professional advice on the subject being discussed.