Just wondering if we should leave our super at 6% per annum or buy a property with the money we have?
The costs for the accountant and auditor are approx. $5000 per annum.
I realise that if we buy a property for approx. $500k the growth will be ok and then the $5k wont be too hard to digest.
What are you guys views?
PS Super balance is about $100k
Superannuation-Leave It as It Is 6% PA or Invest It in Property Maybe?
grabngo on 01/06/2016 - 14:53
Comments
"What makes you think this would be a good investment?"
Because everyone in Australia seems to think property prices only goes one way.
But… you cant lose with property. You just cant.
6% p.a. is a good return in this environment. Don't know what risk profile you took on to get there, but if it is a balanced industry fund, it is doing pretty well.
This link shows the average return was 5.8% but that is before admin fees, so 6% is pretty good:
http://www.superguide.com.au/boost-your-superannuation/top-p…
I have no reason to believe property would give you better, and it also brings substantial risks.
If your super balance is $100k, you will be able to buy property up to $300k. Nothing in Sydney at that price so you will be looking at regional towns or similar.
What makes you think this would be a good investment?
As for $5k p.a. fees, this is absurd. There are online SMSF managers who will do the tax return, audit and compliance for under $1000p.a. The trust for property borrowing adds around $1500 to set up. No need to pay more unless they are giving you tailored advice, in which case I would question them very heavily if that advice was move your entire super into property.