Unlock Your Path To a Property Portfolio using Superannuation: The Essential Guide for Australians Planning Their Future

Dear Future Retiree,

Are you tired of worrying about whether your superannuation will be enough to support you during your golden years? Imagine this: a comfortable retirement where you’re not just getting by, but thriving with a steady, reliable passive income every year. Picture yourself enjoying the freedom to travel, spend time with loved ones, and indulge in hobbies without financial stress. Sounds like a dream, right? But it doesn’t have to be just a dream. With the right strategy, you can turn this vision into reality.

The Problem: Will Your Super Be Enough in Retirement?

For many Australians, superannuation is how we pay for our retirement. Or, Super + the Pension. But as life expectancy increases and the cost of living continues to rise, there’s a real concern that superannuation and the pension are not enough to not provide a comfortable retirement. Why work for your whole life, only to then end up living week-to-week in retirement. The last thing we want is to enter retirement, only to find that your limited savings are rapidly decreasing to support the comfortable life you want in retirement.

By 60 years old, the average Superannuation balance is approximately $300,000. The average Australian lifespan is 83.3 years old. If you retire at 60, and live to 83, with an average superannuation balance of $300,000, that is only $13,000 a year to live off of! Yes, at this balance you would be eligible for the pension. But it is still a significant decrease to income, compared to when you were working full time.

If you have $1 million dollars in the bank, it sounds like a lot of money, but if you pay yourself a yearly wage, it is only $50,000 for 20 years. If you live past those 20 years, and the million dollars is gone, how will you support yourself? If anything, living past those 20 years would require more income to cover any elderly medical bills, or potential living facility costs. This would not only put a financial stress on yourself, but on your family too.

The Solution: Leveraging Your Superannuation Now, Instead of Waiting For Retirement, to Build Wealth

What if I told you that there was an easy way you could significantly boost your retirement income by making a few smart choices now? It is possible to use your Superannuation to invest in property, without needing a cash deposit. You can build a property portfolio that appreciates in value over time, and also sets you up for a comfortable retirement.

Here’s an easy way of how you can do it:

1. Using Your Superannuation to Buy Investment Property: Australia’s property market has historically been a strong performer, offering consistent capital growth over the years. By using your superannuation to purchase investment property, you can take advantage of this growth. The property will appreciate in value over time, building equity and increasing your overall net worth.

2. Is A Cash Deposit Required To Buy Property?: The simple answer is no. A portion of your current Superannuation balance would be the deposit. Not all your superannuation is used; there is a buffer/ rainy day fund left in there. If you are purchasing with your spouse, you can pool the deposit together, by combining some of your superannuation balances.

3. How Is The Mortgage Paid?: When you work as an employee, your employer is required by law to pay you Superannuation. This superannuation contribution, plus the rental income, is how the mortgage is covered.

4. How Does Owning An Investment Property Equate to a Passive Income Every Year?:

Depending on your appetite for investing, holding 1 investment property will help boost your superannuation balance. In a lot of areas around Australia, property is growing faster than what the Superannuation Management companies can offer.

5. What Kind Of Results Have Other People Seen?

If you have $1 million dollars in cash, instead of paying yourself a wage, if you put this in a high interest bank account that earns 5% per annum, that is a profit of $50,000 per year. If you have $2 million dollars and put it into a high interest account, that is a profit of $100,000 per year!

But how does an investment property make $2 million dollars? Realistically 1 property won’t. However, if you own 2 to 3 investment properties, over time you let these grow in equity. When you sell these and pay off the mortgages, the remaining balances could come close to $2 million. This is dependent on what state and suburb you buy in.

6. Use a Self-Managed Super Fund (SMSF): When purchasing an investment property using superannuation, you’ll need to get an accountant to help set up a Self-Managed Super Fund. The accountant will also set up a Trust, on your behalf. The Trust then technically owns the property. Any financial gain from rental income, or sale of asset, goes back into your Self-Managed Super Fund, which is owned by the Trust. You can then access these funds when you retire.

7. Can I Buy A House To Live In Using My Super? Unfortunately, no. It must be for investment purposes only. You cannot rent the investment property to family or friends.

Your Future Awaits..

Imagine waking up each day in retirement knowing that your financial future is secure. No more worrying about running out of money or having to cut back on your lifestyle. Instead, you’ll have the freedom to do what you love, whether that’s traveling the world, spending time with your family, or simply enjoying the peace and quiet of your own home.

This is the retirement you deserve. And with the right strategy, it’s within your reach.

Don’t wait until it’s too late. Start planning for your future today and take the first step towards a secure, comfortable retirement.

Ready to Make It Happen?

If you’re ready to explore this strategy further, we’re here to help. Scroll to the bottom of the page and contact us today, to schedule a discovery session.

We can discuss how you can use superannuation to build a property portfolio that will set you up for the retirement of your dreams.

Remember, your future is in your hands. Take control of it today.

Sincerely,

Ross McFarlane

Founder of How To Home Loans

Mortgage Broker & Wealth Creation Expert

0423331084

[email protected]