Super to purchase ip?

[willister]

Hi,

Is it worthwhile? What are the traps in a general sense? Have about $60K combined with wife in super. We live in a little apartment paid off and have an ip (owe about 70% on it with a bank loan). 1 kid, expecting another in 2015.

Better off saving and getting another loan and looking at another ip 2 years down track or access super to buy it somehow?

Main gripe is that I see super as "dead money" - poorly utilised when you are at your financial peak and stupid fees not to mention constant losses.

Thanks.

 

[Scott No Mates]

No idea of your age will however your complaint seems to lie with the fund itself. Are you in an industry fund or a retail fund? Retail funds do have high fees, I have been with several including AMP, ASGARD and others - all pretty poor IMHO. Choice of fund was introduced years ago, if you don't like your current fund, go to superratings check out the returns of other funds and tell your employer that you want to change.

 

[Rolf Latham]

60 k isnt really enough for SMSF of any sort in my view

May also not be smart to have ALL your investments in resi real estate

ta

rolf

 

[Redom]

Heya,

60k wont get you very far. Will need to be able to close the transaction with a 20% deposit + closing costs (for resi). What type of properties are you looking at? Best to wait till the balance is a little higher before taking this route.

May also have an impact on your own personal investing, so best to consider whether timing suits.

Cheers,
Redom

 

[willister]

No idea of your age will however your complaint seems to lie with the fund itself. Are you in an industry fund or a retail fund? Retail funds do have high fees, I have been with several including AMP, ASGARD and others - all pretty poor IMHO. Choice of fund was introduced years ago, if you don't like your current fund, go to superratings check out the returns of other funds and tell your employer that you want to change.

Currently with MLC, poor returns - actually losing money on most years and exhuberant fees. Was told Australian Super was way to go.

I'm mid 30s, wife is 30, looking at 25-30 yrs working life for both of us!

 

[Jaredp]

Australian supers pension product is sub par. No anti detriment feature etc.

Can always use gearing within a retail fund to leverage your investment.