Welcome back to another episode of the 360 Money Matters Podcast!
In this episode, we explore the utilization of superannuation to purchase property within a self-managed superannuation fund. We place strong emphasis on the importance of diversification when investing in property through superannuation funds. Placing all retirement income into a single asset class exposes individuals to significant risks, underlining the need for diversification within their portfolio. Additionally, we discuss the benefits of leveraging, such as the potential for increased profits, and the tax advantages associated with selling properties in the pension phase to avoid capital gains tax.
However, we also caution that careful consideration must be given to factors such as cash flow, additional contributions, borrowing costs, and other expenses before pursuing this strategy. We also touch upon alternative options, such as retail or industry superannuation funds, for the purpose of comparison.
Ready to explore the world of property investment through your superannuation fund? Tune in to our episode for valuable insights and considerations.
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This podcast contains information that is general in nature. It does not take into account the objectives, financial situation, or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This information is provided by Billy Amiridis & Andrew Nicolaou of 360 Financial Strategists Pty Ltd, authorized representatives and credit representatives of AMP Financial Planning – AFSL 232706
Episode Highlights
Using super funds to buy property and the considerations involved
Benefits and consequences of direct property
Complexity and cost involved
Importance of diversification when investing
Tax benefits and leveraging opportunities
Considering cash flow and other fees and costs
Importance of seeking professional advice
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