People are doing this everywhere we look but that does not mean it is the best thing for you. Don’t get us wrong, we love bricks and mortar, we just believe most people do this for the wrong reason. Here are some misconceptions we hear;
You make more money
The stock market will most likely outperform the property market, but we are never really comparing apples with apples. Super funds with a balance of 200k, earning say 9% per annum cannot compete with a property kicking out 6% per annum. Properties are generally worth more then 200k. BUT 6% vs 8%, what would you rather? You may as well say turn you super into Bitcoin because it earns more. Please get some qualified advice here before you proceed.
I can make more money if I have more control of it
Really? What are you basing this on? What shares do you trade in and can these same shares be purchased through a retail super fund? If they can then why are you running a SMSF to do it? it could be costing you more money.
Property never goes down
LOL – You may want to have a look at some mining towns to see exactly what can go wrong in property. Don’t try to play catch up. Please do your research and seek qualified advice.
SMSF’s are easy to run
Anything is easy if you know what you are doing. But do you really know what you are doing? Have you ever run a company before? You may be able to get someone to run it for you but please do not think it is easy. It can be harder then your super fund today. Please just understand what your obligations are a director or trustee of a super fund are before you commit to running one.
So, we are not saying don’t do it but like most things in your life, please do it for the right reasons.