Why are the Alarm Bells ringing for SMSF Property Investing ?
.
A recent Article in the Sydney Morning Herald entitled,
"Warning sound on DIY-super property",
states,
'DIY superannuation funds turbo-charged with borrowing to buy property
are failing after two years because of high costs and low returns,
sparking alarm within the billion-dollar retirement industry about the
controversial investments.'
.
.
A recent Article in the Sydney Morning Herald entitled,
"Warning sound on DIY-super property",
states,
'DIY superannuation funds turbo-charged with borrowing to buy property
are failing after two years because of high costs and low returns,
sparking alarm within the billion-dollar retirement industry about the
controversial investments.'
.
.
The Article continues,
'Advisers recommending self-managed super funds claim they are being bombarded by property developers with offers of up to 20 per cent commissions, top-up bonuses and other special cash incentives to encourage the super investors to buy off-the-plan apartments.
"This is scary"....said the executive of SunSuper, a $30 billion super scheme for major companies and individuals, about the pressures on investors to borrow against their retirement assets.
.
Investors are being offered "returns" on apartments equivalent to more than 20 times the Reserve Bank of Australia's cash rate, with free furniture and guaranteed tenancies.'
.
The above Flow-Chart shows the potential problems with Property Spruiker Seminars giving incorrect advice on the setup and structure of SMSF's . The issue is that over-priced Apartments are sold at these Seminars using super savings as security for the loan.
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