Investment property: Should we buy with our $700,000 super?

Q: My wife and I are about to set up a self-managed super fund to purchase a geared investment property as a diversification strategy, following some financial modelling advice. We are both 52, with combined super in two Macquarie Wrap funds of $770,000 invested in Australian and overseas shares. We’d like to buy a medium-sized investment property.

Because property prices have been trending up, people assume this will continue, says Oliver, but investing in property is a lot more complicated.If you are unlucky and buy at the high end, you could find that six years later prices haven’t moved very much – and in fact have even gone down.Do your homework on property price trends in the area you plan to buy. Many people don’t buy investment property based on serious and detailed research but rather because the location is an area they know.

Interest rates staying high are risky for new property investors, says Oliver, especially if rents remain subdued – which they are these days, in particular for houses where they are averaging 2 to 3 per cent.

España Últimas Noticias, España Titulares

Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.

Assembly Funds Management: Investment house names new chief investment officerThe real estate investment firm has elevated former Invesco head of acquisitions Tim Meurer to head up its investment strategy.
Fuente: FinancialReview - 🏆 2. / 90 Leer más »

Foreign Investment Review Board: It’s economically naive to cut China out of direct investmentThere may be more “like-minded” investors out there for Australia’s resources sector, but will they be as competitive and efficient as China has proven to be?
Fuente: FinancialReview - 🏆 2. / 90 Leer más »

Investment property: boost super by selling before you retireMaking the most of higher superannuation caps can boost your retirement coffers just when you need it the most.
Fuente: FinancialReview - 🏆 2. / 90 Leer más »