You don't have credit card details available. You will be redirected to update payment method page. Click OK to continue.
Read part 1 here.
People are either pushed into self managed funds by accountants or by property spruikers – you may have noticed the papers are full of full page ads flogging units off the plan which are often going to turn out to be duds. The secret to buying property is to look for an established property in a good location that is being sold by a vendor who for some reason has an urgent desire to sell. To maximise profits, borrowing should be 100% if possible, and this should be in the name of the highest income earner. It’s a basic tax principle that you take a tax deduction sooner rather than later. Also, much of the alleged tax benefits of buying brand new property is negated if that property is bought in a low taxed fund such as superannuation.
The other type of people who go for SMSFs are the ones who panic when the market has one of its normal falls, and then say “I could have done better myself”, and in this situation they are usually only thinking of term deposits.
SMSFs are appropriate for people who want to own their own business premises, or who are skilled, experienced, DIY share investors, or who want to invest in the kind of investments that are not available on the approved product list of the big banks who control 90% of wealth management in Australia. A good example is the Sentinel Property Trust in Brisbane in which my own SMSF is invested. Their track record is brilliant but they are too small to ever be considered by any of the big institutions.
A: Hi Noel,
Some people being pushed into SMSFs by accountants and the property spruikers is a new thing, but there are a lot of rational people who have gone for SMSFs because they have been ripped off by old world financial advisers or poor fund managers or they simply know they can do better.
Also a lot of new age financial advisers are listening to their customers and are delivering on what their customers want. The dominant platform world of the old days is withering because of an ordinary track record and the SMSF growth is proof of this.
I am all for blasting property spruikers out of the sector but as someone who built his financial advisory on doing it the honest way of charging a flat dollar fee the SMSF development I see is a great thing.
