The following is related to retirement planning investing in Australia. This is only general advice to provide an overview of the differences between investing in property or superannuation in Australia in order to boost retirement savings.
Investment Types
Property is defined as residential (house or unit), commercial, or property trusts. Superannuation has different asset classes: shares, fixed income, property. This provides for diversity, and ensures all the investment nest eggs are not in the one basket.
Amount to Invest in Property
Generally investing in property is not flexible. A large amount of cash is needed to buy into the market. A mortgage loan can be taken against the investment property, or another property, to obtain the amount to invest in property. This carries some risk as well as possible tax advantages.
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