Consider as Self Managed Super Fund (SMSF) early in life !
After having build up sufficient equity (about 60k) with a first investment property the next move could be to set up a SMSF and acquire more property through a SMSF trust.
Young people usually shy away from advanced Super Strategies, cause old age is far away and the money is not accessible for donkeys years.
Furthermore SMSF is usually discouraged until somewhere midlife when the fund has reached at least $200k. Why ? Because of the high setup and maintenance costs that financial advisers charge and because of the complexity of self managing such a versatile fund.
However costs should no longer be a show stopper. As soon as you have enough equity (either by natural asset price growth or due to increased sweat equity) you should look into such a great instrument, where you can enjoy the best of both worlds. Click on esuperfund to learn more.
As a matter of fact if you join before 15 April 2011 its all free for 2 years. Otherwise it's just free to set up and then 699.- pa * (all subject to change). Here is a quote from esuperfund.
ESUPERFUND currently has a free setup fee and a fixed annual fee of $699. This equates to an annual running cost of 0.35% on a $200,000 super benefit. Not many Retail Funds can claim that. Using the marketplace norm of 1% per annum as an acceptable fee ratio would imply you could setup a SMSF with ESUPERFUND with as little as $60,000.
Why is a SMSF property so good ?
A: You pay no capital gains tax.
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