If like me you are worried that you will not have enough money to retire in the style you are living now, you are not alone. What you need to create is passive income and you need to start NOW. Many Australians don't have enough in their Super to retire comfortably, so here are the two best options.
- Plow more money into your Super, convert to a SMSF then buy property in the fund. Banks will lend 70% – 80% of the purchase price so you don't need the full amount. Whilst still in the fund this property is increasing in value AND collecting rent and getting tax deductions. When you are in retirement phase this property can be transferred into your own personal name and you can live in it or collect the rent from it. That is a good, tax effective way of creating a passive income. If you can buy more than one, all the better.
- Get a tax deductible loan from the equity in your house now. You will only need between $30,000 and $50,000 to invest in property. The rent will cover all your costs and this property will create equity for you. The more properties you have the more equity you are creating.
Do it before it’s too late and while you have a good income. Banks are happy to lend money to earners so do it NOW.