It is good advice not to have all of your eggs in one basket, but it’s also important to compare and understand your options.
With Super & Shares:
a. You are usually dealing with an intangible asset b. There are high broker’s fees c. You have little control d. Your returns tend to fluctuate considerably e. The share market can be very volatile. Fortunes made and lost in a day. f. And, financial institutions do not seek shares as security for borrowing. Now lets compare property: g. It is very tangible; You can see it, feel it drive past it. h. As a purchaser, you do not pay agents commissions. The seller pays these. i. With property, you’re in control, you may be advised by your chosen agent or property manger but you make all of the final decisions. j. As has already been demonstrated, the record of property as a stable long-term investment is second to none. k. Banks advertise daily that they will lend up to 98% of the value of residential properties and if you already have equity in your own home, they will lend you 100% plus any other funding that you require.
There is no argument that superannuation is a positive move. It’s an undeniable fact that we have an aging population that before long will not be able to support a pension system. Rather than just relying on a super fund that may only give you a third or half of what you currently earn, why not start building a solid property portfolio and be sure of an increasing long term income long after you retire?