Have you ever considered managing your own superannuation fund and investing in property through the fund?
With the laws that have been introduced it is now possible to do this and it is also possible to get bank financing for buying the property. Getting bank financing was almost impossible until recent years and it has changed the way many people think about their superannuation.
Something that many people do not focus on is the possibility of setting up family superannuation and really kicking along the returns for the family. These types of superannuation need to have very strict guidelines that everybody agrees upon regarding inflow and outflow and investing, but they can be very profitable all round if everyone is in agreement.
Have a look at what would happen to your superannuation over a twenty year duration if you took control and purchased property with it.
After about 9 years of contributions you will have enough funds to purchase a property and by year 20 you will have up to 4 inexpensive properties in your super fund. If this is the possibility with one person, imagine what can happen with two or more. The growth of wealth could be enormous.
Assuming these properties perform in line with all the other properties in Australia (that is double every 10 years), your super fund will have total assets valued at about $525,000 over the 20 year period.
By year 20 you will also have an income of approximately $31,500 per annum. This was done through simply managing your own super fund and having leveraged residential property in your super fund and estimating the return has been on the conservative side.
Like most things, when you first start dealing with a super fund you probably find it difficult but as you learn how to manage a fund and use your accountant’s help you will soon be able to make headway.
Managing your super fund successfully is just the same as managing any type of investment successfully. You need to educate yourself, stay tuned to changes and always work with current data. If you are using these strategies there is no reason why you cannot grow your superannuation into a substantial holding over time.
There are certain restrictions with managing a super fund so it is important that you find out the correct procedure for investing and for this information you can access the Taxation Department, but to get the whole picture it would be worth having a good sit down and discuss your situation with your accountant. Like most things, there is more than one view with regards to managing your own superannuation account and it all needs to be taken into account so that you can make informed decisions.