- Posted By Rebecca Bell
It wasn’t so long ago that people used to say if you own your own property you’d be right for life but times have changed.
Everyone needs an investment plan and some way of looking forward in their vision to the future. The question we all have to ask ourselves is, how am I going to earn a retirement income independent of pensions that are based off my own assets?
Over the last couple of years, particularly in the area of superannuation, the laws and regulations have really become much more favourable to investors. A lot of the inflexibility and controls have been relaxed such that superannuation is now a legitimate way to grow your assets in a tax-free environment. For example, contributions to superannuation are now tax-free for investors over the age of 60.
Further, when you salary sacrifice into super, you are taxed at 15 cents to the dollar instead of 30 - 50 cents. So over a period of time, a property can be paid off through that 15 cents to the dollar tax instalment which is a great way to build assets in property. Your super is a valuable asset and it could be working for you.
In the not too distant past, a self-managed super fund (SMSF) was not able to obtain a loan. With a recent change in legislation however, The New Australian Dream has been created and it is now possible to go out there and purchase a property to develop your asset base with your self-managed super fund.