When you imagine yourself in retirement what do you see? Are you living comfortably, enjoying a lifestyle that allows you to do the things you love, free from financial worries? Or are you living week to week, struggling to pay the bills, relying on a dwindling super balance that is topped up with the government age care pension?
While we all aspire to a retirement that is free and easy, it will only happen if you have a plan and take control of your future.
One way to do this is to invest in property—but without a deposit to put down on a new home, this can seem out of reach. The good news is that there is a way to unlock your super and build a property portfolio to secure your retirement: with a self-managed super fund.
Why switch to a self-managed super fund?
When your super is in a retail or industry fund, you have very little, if any say in how and where it is invested. Mostly, members leave it to the fund managers to make the decisions, and often the majority of your money (around 80%) is invested in shares. But, as we have seen over time the share market can and does crash, generally every 7–10 years. And this can be catastrophic to your retirement plans when it happens, as many have learned the hard way.
An alternative approach is to switch to a self-managed super fund (SMSF) where you choose how your super is invested. This gives you the freedom to invest in property, which provides you with the stability of a bricks and mortar investment, and the potential to earn passive income that can fund your retirement lifestyle.
How does property investment inside your super work?
There are many ways you can choose to invest your super in your SMSF, but the strategy we recommend focuses on property. By investing in property inside of your SMSF you can use the power of leverage.
Our property investment experts will help you find a turnkey investment property that ticks all the boxes for long-term growth: proximity to a CBD in a growth area that has easy access to schools, transport, shops and hospitals. We only recommend properties that will be tenanted fast—for example, our client David Dunnings purchased an investment property on the Sunshine Coast and it was tenanted in three days.
Who can this strategy work for?
If you’re looking for an alternative to shares and retail or industry super funds to secure your retirement, property investment inside super could be the answer. You’ll need to complete the eligibility checks and have a minimum of $150,000 in super, however the minimum amount can be reached in combination with your partner or up to three other family members or friends.
Our clients are typically hardworking Australians who are looking to set themselves up for a comfortable retirement, like Ian and Nikki who were looking for an alternative investment strategy after their parents suffered significant loss from their super during the global financial crisis. They made the switch to an SMSF and within a year they have purchased two investment properties and counting.
Do you have to manage your SMSF on your own?
Switching to an SMSF means you have greater freedom around your investments—which also comes with greater responsibility. For that reason, starting an SMSF alone, without the support of a team who understand the complexities and legal requirements is not recommended.
When you partner with us, your super will be managed by our team of experts including a financial planner and accountant, and you are fully supported by our investment, superannuation and property professionals who will guide you in your decisions to be sure your property portfolio continues to grow and thrive. Your behind the scenes team takes care of everything from the admin to the strategic vision so you can be confident that your super investments are always growing and are in the right place.
Don’t leave it to chance—take control today
If you want to secure a retirement that allows you to live with freedom, it’s unlikely your super in a retail or industry fund alone will allow you to do so. So don’t leave it to chance. Research your options and if property investment inside your super seems a good fit, talk to our team today.
