very lamb duck shares vs real estate, page-18

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    i have found many who have moved from retail superfunds to smsfs have then opted for cash temporarily and then have moved to property. Smsf's are growing at an alarming rate and this is having a direct impact on the all ords...to what effect unsure. The gearing strategies are great for high earning employees...example

    couple earning $250k combined
    $22500 super contributions
    approx $200k in super rolled over.
    purchase an investment property for 600k
    deposit required 120k plus stamps 30k
    borrow 480k..interest only at 7%
    rent received per annum $24960

    total income for the superfund to fund the loan of 480k is $47,460..paid by the tenant and employer..members contribute nil... and best of all no cgt on sale and no income tax on rent from age 60 for the rest of their lives..

    a simple example as this is affecting our stock market..200k ripped out of the equities market into cash and real estate multiplied by god knows how many are doing it.

 
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