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Investopoly
Each episode is packed with concise tips, strategies, research, methodologies, case studies, and ideas to help you safely and effectively grow your wealth. Stuart Wemyss, a qualified financial advisor, accountant, tax agent, and licensed mortgage broker, delivers holistic advice. With four authored books, including "Investopoly" and "Rules of the Lending Game," Stuart shares his insights through a weekly blog, which is replicated on this podcast.
Investopoly
Ep 342: Are the benefits of investing in property with your super overstated?
New Report: The Evidence-Based Approach to Investing in Property & Shares: download here.
Read full blog here.
In this episode, Stuart breaks down the realities of borrowing to invest in property inside your superannuation. While SMSFs using Limited Recourse Borrowing Arrangements (LRBAs) have seen impressive asset growth—rising from $43 billion to $70 billion in just five years—the benefits of this strategy are often overstated.
Stuart dives into the numbers, comparing returns on property investment inside and outside of super. He highlights key factors such as higher SMSF loan interest rates, reduced negative gearing benefits, and the importance of gearing ratios. While avoiding Capital Gains Tax (CGT) in super sounds appealing, the actual after-tax return may not always outperform traditional property investment in personal names.
Should you borrow to invest in property inside super? Or would you be better off leaving your funds in a high-performing super fund instead? Stuart provides in-depth analysis, answering these critical questions and offering practical guidance on making the right investment choice.
He also warns of potential liquidity traps and emphasizes the importance of choosing investment-grade property for long-term growth. Tune in to get the full breakdown and a sneak peek into next week’s strategy for overcoming borrowing constraints in super!
Do you have a question? Email: questions@investopoly.com.au or for a faster response, post a comment on the episode's video over on YouTube: https://www.youtube.com/@investopolypodcast/podcasts
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IMPORTANT: This podcast provides general information about finance, taxes, and credit. This means that the content does not consider your specific objectives, financial situation, or needs. It is crucial for you to assess whether the information is suitable for your circumstances before taking any actions based on it. If you find yourself uncertain about the relevance or your specific needs, it is advisable to seek advice from a licensed and trustworthy professional.
