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Buying a Home with Your Super- Things You Need To Know

>> Dec 13, 2011

Buying a home with your superannuation sounds like a good deal and often is. It’s considered “smart” and has some tax benefits. Fine, but let’s not get too starry-eyed just yet. There’s more to it than that. A lot more, in fact, and it has to do with the basics of property investment. If you’re going to invest your super in a home, you need professional advice. You must be 100% sure you’re making the right move with your super.

The big issue- Avoiding taking risks with your super
Your super is your nest egg. For most people, it’s the biggest source of personal capital outside their homes. When buying a home with your super, perhaps for your retirement, the risks of buying investment property must be clearly understood.

The problems are:

Getting value out of your investment rather than more costs- When you buy any property, you’re buying a situation which involves:

· The quality of the premises
· Site issues
· Financial outlays
· Maintenance costs
· Rates
· Water rates
· Property tax, where applicable

If you just had a vision of thousands of dollars flying around, you’re a true realist. These things have to be factored in to any property investment. This is your super we’re talking about, too, so the risks could have other impacts, particularly on your retirement capital, if you take on unforeseen extra outlays.

Sorry to be so apparently negative, but it’s critical that when you invest your super you’ve got a good idea of all the basic information you need and a healthy respect for possible risks. To make the best use of your super, you have to pin down all these issues well before the purchase stage. You don’t want to be buying a liability. You want to be buying an investment property asset which will do what you need it to do.

Getting it right
The formula for successful risk management when investing your super isn’t complicated, but it does involve some preparation.

You need:

· A very clear picture of your goals- Before doing anything at all, decide what you want, and what sort of investment you’re prepared to make. Do you want a nice apartment, a cozy home, a beachside bungalow, or something special based on personal tastes? OK, now do some costing- Doable, isn’t it?

· Expert property investment advice- This is basic common sense, but you’ll find that the information available is invaluable in risk assessment and forward planning. A few minutes consultation or reading information can make the difference between a sad mistake and a brilliant investment move.

· Good financial advice- It’s a very good, simple move to run your investment idea past your tax accountant. You’ll find that all the information you need regarding your options for investing your super are just a phone call away. You also need to know what you can and can’t do in terms of superannuation laws.

Remember that you can use your super to get a dream home, if you try. Getting things right will pay off.

About This Blog and Me!

Welcome to my blog. I'm a home maker, a stay at home wife. I'm just an ordinary woman who has interest in reading, working at home and learning to write. We live in Bogor, Indonesia.
This blog contains articles in family topic.
Contact me at linalg4@gmail.com

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