We have a love affair with residential property.<\/h3>\n

The \u2018Great Australian Dream\u2019 seems to have gone from owning your own home to owning a few homes. You can\u2019t go wrong with bricks and mortar, right?<\/p>\n

With easy access to money and spruikers advocating tax savings through negative gearing many Aussies are up to their neck in debt. Over the past few years almost 1 in 10 \u2018Mums and Dads\u2019 have opened Self-Managed Super Funds where they pool their existing super funds, then borrowed in the Fund to buy residential property.<\/p>\n

With expensive compliance costs, property costs and interest on loans many of these SMSF\u2019s are running at a terrible loss, only being propped up by the members\u2019 ongoing contributions. Former PM, Paul Keating described this as an \u201caccident down the road\u201d.<\/p>\n

When interest rates rise and they will, and if the jobs markets tightens over the next couple of years, the \u2018Mums and Dads\u2019 who have gone down this path may have no other alternative but to sell the property and wind up the SMSF. If this is the trigger that makes supply exceed demand just watch what happens to the fundamentals of house prices.<\/p>\n

Debt is a wonderful servant but a terrible master!<\/p>\n\n\n

By Terry Powell<\/a> – Managing Director<\/p>\n\n\n\n

Connect With Terry on LinkedIn<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

We have a love affair with residential property. The \u2018Great Australian Dream\u2019 seems to have gone from owning your own home to owning a few homes. You can\u2019t go wrong… Read more »<\/a><\/p>\n","protected":false},"author":2,"featured_media":245,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-244","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles"],"acf":[],"yoast_head":"\n