As a self funded retiree I argue that property investment is the way to go:-
My wife and myself have purchased four investment units over recent years and all have shown a good return. Certainly much better than what we would have received if the money had been placed in a bank or a super fund.
When considering this type of investment, individuals should take into consideration the following:-
(1) Self-funded retirees (married couples who have reached retirement age) can earn approx. $60,000 per year and pay no tax.
(2) Current eligibility for the Commonwealth Seniors Heath Card is $50,000 per year – Single $80,000 per year – Couple
(3) The current NSW Land tax threshold is $412,000. If properties are purchased in various names as “Tenants in Common”, each title holder is allocated a $412,000 threshold. Individual family members (sons and daughters) can be allocated a 5 – 10% ownership in the property and should one of these children unfortunatly “go belly up financially” the cost of buying out that persons interest is only minimal.
(4) No SMSF compliance costs are involved and no commissions are payable to any “financial advisor”
(5) Property values over a 8 – 10 year cycle will approximately double.
WHAT HAVE BEEN OUR RETURNS TO DATE
Listed below I have itemised the actual acquisition costs of the four properties involved, term over which property has been held and a calculation of the average monthly return. (Rent + capital appreciation LESS outgoings)
(A) Acquisition Cost. (B) Period property has been owned. (C) Average yearly Return.
