Chris Magnus from Ark Total Wealth says most of his clients want to have their own home debt-free with super savings that will provide them with a regular income.
If you are 55 and the gap between what you’ve got and what you need to retire is large - you may need to take remedial action and make some geared investments
Work backwards
- How much money do you need when you retire
- What do you have now
- How do you get there?
If you want to add a geared investment property to your retirement savings, there are a few things you need to think about.
Can a geared property or a few geared properties in an smsf help you to get there?
Is a 10 year investment time horizon between buying a property and when you plan to retire deliver the capital gains required ?
- yes if the property doubles in 10 years -
- and if it doesn’t - can you wait a further 5 years ?
⁉️What to buy , ⁉️where to buy and ⁉️when to buy are key questions
Here are my 3 tips from experience
- Do your research and use professionals who you know like and trust …..
- Be wary of the property spruikers
- Get independent advice - who does not have a vested interest in your decision of what to buy!
If you wish to make money from gearing, Shane Oliver of AMP says to consider geared share funds.
If your property asset grows to be about $2 million in combined member benefits, and you move to pension phase at 65, super rules will oblige you to withdraw 5 per cent of the SMSF, or $100,000, each year.
Will the investment property be able to deliver the rental income to allow this level of income to be withdrawn as a statutory minimum. Or will the asset need to be sold to fund the retirement income?
I suppose this is not a bad problem to have
Inspired by an article by John Wasiliev of the afr - sharing his views on investing in geared property in your smsf :-
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