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**dr-eavealer** · 09-21-2012, 11:10 AM

Hey Go Jo, could you explain this a little further? sounds interesting..

Putting money into your super has 2 big advanatgaes:

very low tax environment - around the 10% mark
very strong asset protection - can not be touched by bankruptcy or any other action (other than divorce settlements)

On the down side:

you can't touch it until retirement age (won't matter if you are nearly there)

Investment properties are interesting for many, as Australia is one of only THREE countries in the world that allows all costs against an investment property (and incidentally any other income producing instrument) to offset your earned income.

So if your wage is $100k pa, but your investment property costs you $30k per year to own (interest payements, maintenance, depreciation, less rental income), then your TAXABLE income is $100k - $30k = $70k
Of course, the investment in the property won't make sense unless the property value goes UP by considerably more than $30k in a year!

Cheers,

The Y-man

09-21-2012, 11:10 AM	#5
dr-eavealer Join Date Oct 2005 Posts 603 Senior Member	Hey Go Jo, could you explain this a little further? sounds interesting.. Putting money into your super has 2 big advanatgaes: very low tax environment - around the 10% mark very strong asset protection - can not be touched by bankruptcy or any other action (other than divorce settlements) On the down side: you can't touch it until retirement age (won't matter if you are nearly there) Investment properties are interesting for many, as Australia is one of only THREE countries in the world that allows all costs against an investment property (and incidentally any other income producing instrument) to offset your earned income. So if your wage is $100k pa, but your investment property costs you $30k per year to own (interest payements, maintenance, depreciation, less rental income), then your TAXABLE income is $100k - $30k = $70k Of course, the investment in the property won't make sense unless the property value goes UP by considerably more than $30k in a year! Cheers, The Y-man
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