Financial PlannersNewsSuperannuation FundInvest SMSF In Property

Self Managed Superannuation Funds (SMSFs) are being used to invest in property by many in the Perth area. However, a financial planner in Sydney is of the opinion that those planning to invest their SMSFs in property should be very careful and make sure they know whether or not their advice is impartial. *

Sydney financial planner and accountant Michael Hutton warns that investors should seek impartial advice instead of merely accepting advice from someone who is trying to make a sale. Mr Hutton is of the opinion that many of those who are entrusted with helping their clients maximise their SMSFs are forgetting that the SMSF is a long-term investment strategy that is meant to provide a better lifestyle during retirement. *

Mr Hutton believes that investment property works best as a long term investment and that rental yield on investment properties tends to be too low to offer immediate cash flow. He is also of the opinion that gearing a property can cause problems further down the line. He would rather that an investor enter retirement debt-free and that their retirement funds should be generated by solid assets. *

One problem that Mr Hutton feels investors and advisors fail to consider with investment property is that illiquid assets such as property can be difficult to unload at the proper time. He also points out that conveyancing costs stamp duty are incurred when transferring a property to a beneficiary. *

We Can Help You

At Approved Financial Planners, we sit down with you and use your basic information to create a snapshot of your financial situation. Once we have enough relevant information, we can work with you to formulate a plan that can help you create the retirement that you desire and work out if a SMSF is a suitable option for you.

For a discussion of your SMSF or any other financial planning needs, call our Perth office today: 08 6462 0888.

*Money Management, 19 September 2014. “SMSFs warned against residential property.”