Property investors need advice
A residential property research firm has warned the trustees of self-managed superannuation funds to be conscious of the new rules applying to adding real estate to their portfolios.
The chief executive of Branxton Chase, Andrew Donnelly, said that while the new rules enabling self-managed superannuation investors to borrow money and leverage assets such as property presented tremendous wealth-creating opportunities, they were also fraught with danger for inexperienced investors.
“There has been an abundance of good information out there for superannuation planners wanting solid advice on share investments, but not so residential property investments,” Donnelly said.
“It is truly staggering how residential property investors continue to fall under the spell of spruikers, scammers, unscrupulous real estate agents, emotion, rumour and hot tips for easy fortunes,” he said. “Falling victim to any of these when mixing real estate investing with super planning is a sure way to create cracks in retirement nest eggs.”
Donnelly said that superannuation fund trustees needed to treat property as a financial product, placing it under cold, hard, ruthless scrutiny to be sure it had all the key attributes to deliver good long-term yield and growth.
AUTHOR
Mike Taylor
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