The problem I have with some of these white board videos is that they assume a certain percentage of capital and rental growth but don't also assume that properties they would want to buy in the future have also grown and that cost of living has gone up.
I don't understand how this is good investment. It sounds like we assume only our money will grow and everything else's price will remain same in the next 10-20 years. I understand how you buy 2 houses with $300K cash today. But I do not understand how can you buy 4 houses with $600K "in the year 2034". The house prices will increase by then and with $600K you can buy at most 3 houses with weaker capital growth. That is, likely the ones that did not show much capital growth in the past 10 years (2024 to 2034). The other thing, by the time they are 60 with 2 houses yes, they'd be making $100K per year. But accounting for 3% average inflation per year, its purchasing power would be equivalent of today's ~$55K per year. Or I misunderstood some things in this video :D
No matter how good of an investor you are or how good your buyer's agent is, in 10 years you aren't going to find 4 good investment properties for 200k less (each) then what they will be worth by then. You might be able to turn 2 into 3 but 2 into 4 in just 10 years is abit of a stretch @@ruriruri03
I have a fully paid off property in my smsf When i get to 60 in a few months My income is totally tax free It will pay me more per yr than i currently earn on which i do pay tax
Hi Ravy good learning video, my wife and I have 350k of super similar to your example, we are in the process of setting up smsf, is it ok to buy a house together or one at a time. Thank you
What are the chances of the govt including the family home in the assets test for an aged pension within the next 10 years? My goal is to put all my money into a property and have in cash - whatever the govt says I can have and still claim a full aged pension.
Commercial? Your example doesn’t count for inflation in that future income stream. This is so important to highlight any reason why you don’t mention it? As a $100k pa income in 20yrs time won’t let you live a lavish lifestyle. You probably need a $150k pa income at that time to do what you could do today on $100k. I think you need to highlight that the 10yr example is buying property at that future point in time at property worth today at $300k. Otherwise you haven’t accounted for compounding growth?
@@PersonalFinancewithRaviSharma from the ATO. An investment property on an SMSF loan must be positively geared, or at least have neutral cash flow. What am i missing
I tried to buy property with my SMSF at the start of the year but missed the boat with the property price explosion. Now they're out of my reach. The only other potential issue you failed to mention is that Labor is introducing the Superannuation unrealised gains tax of $3 million or more. At the moment only around 5,500 people have $3 million or more in superannuation. But with any tax, it will trap more people over time. I think it is a 40% tax too.
Labour also made it harder for FHBuyers to rent their properties out after moving back into their parent's house. They increased it from 6 months to 12 months. it's clear these people hate property investors!
The level of inefficiency and corruption in this administration is becoming absurd. Those who are disabled and do not receive the support to which they are legally entitled make me sad. I sincerely thank you, June Renae Matthysse. Imagine making $6k in 20 days with an investment of $1.5k.
That woman transformed my entire life for the better. Among the folks I've met, June appears to be the most trustworthy. I'm surprised you know her as well.
![F.HERO Ft. JSPKK x ลำไย ไหทองคำ x M-PEE - ไม่สนิทบิดหมด (Thai Riders Anthem) [Official MV]](http://i.ytimg.com/vi/kPJZ0UihBfk/mqdefault.jpg)
Commercial?
Would love to compare the two and breakdown the different types of commercial properties! Thanks for the video as always Ravi :)
The problem I have with some of these white board videos is that they assume a certain percentage of capital and rental growth but don't also assume that properties they would want to buy in the future have also grown and that cost of living has gone up.
100% - over simplistic to the point it's misleading
I don't understand how this is good investment. It sounds like we assume only our money will grow and everything else's price will remain same in the next 10-20 years.
I understand how you buy 2 houses with $300K cash today. But I do not understand how can you buy 4 houses with $600K "in the year 2034". The house prices will increase by then and with $600K you can buy at most 3 houses with weaker capital growth. That is, likely the ones that did not show much capital growth in the past 10 years (2024 to 2034).
The other thing, by the time they are 60 with 2 houses yes, they'd be making $100K per year. But accounting for 3% average inflation per year, its purchasing power would be equivalent of today's ~$55K per year.
Or I misunderstood some things in this video :D
Investing in SMSF only works if you are really good at investing.
No matter how good of an investor you are or how good your buyer's agent is, in 10 years you aren't going to find 4 good investment properties for 200k less (each) then what they will be worth by then. You might be able to turn 2 into 3 but 2 into 4 in just 10 years is abit of a stretch @@ruriruri03
I have a fully paid off property in my smsf
When i get to 60 in a few months
My income is totally tax free
It will pay me more per yr than i currently earn on which i do pay tax
After 10 years there wouldn't be 4x 500k properties available to buy. Likely they would have to look at buying 3x 700k properties
Hi Ravy good learning video, my wife and I have 350k of super similar to your example, we are in the process of setting up smsf, is it ok to buy a house together or one at a time. Thank you
But with this do you have to pay smsf tax every year? Property get assessed every year then you get taxed on the capital gain?
no
What are the chances of the govt including the family home in the assets test for an aged pension within the next 10 years? My goal is to put all my money into a property and have in cash - whatever the govt says I can have and still claim a full aged pension.
Commercial?
Your example doesn’t count for inflation in that future income stream. This is so important to highlight any reason why you don’t mention it? As a $100k pa income in 20yrs time won’t let you live a lavish lifestyle. You probably need a $150k pa income at that time to do what you could do today on $100k.
I think you need to highlight that the 10yr example is buying property at that future point in time at property worth today at $300k. Otherwise you haven’t accounted for compounding growth?
$2000 a week in 20 years might not be that lavish of a lifestyle
Exactly what I was thinking, in 20 years 2k a week would probably be like 500 a week now
Hey Ravi
My wife and I have around $400k in super is that enough to start a SMSF
Shoot us an email team@searchproperty.com.au
Dude you cant do that. It has to be positively geared with super. 20% on 500k. Rent doesnt cover it so these numbers dont work.
No it doesn’t
You can have a negatively geard property with ur super? Let me know because that was the only thing holding me back?@@PersonalFinancewithRaviSharma
@@PersonalFinancewithRaviSharma from the ATO. An investment property on an SMSF loan must be positively geared, or at least have neutral cash flow. What am i missing
@@riggingcranetips7393 there are no ATO rules regarding the level of borrowing for a SMSF. The restrictions come from the banks.
I tried to buy property with my SMSF at the start of the year but missed the boat with the property price explosion. Now they're out of my reach.
The only other potential issue you failed to mention is that Labor is introducing the Superannuation unrealised gains tax of $3 million or more. At the moment only around 5,500 people have $3 million or more in superannuation. But with any tax, it will trap more people over time. I think it is a 40% tax too.
Labour also made it harder for FHBuyers to rent their properties out after moving back into their parent's house. They increased it from 6 months to 12 months. it's clear these people hate property investors!
The level of inefficiency and corruption in this administration is becoming absurd. Those who are disabled and do not receive the support to which they are legally entitled make me sad. I sincerely thank you, June Renae Matthysse. Imagine making $6k in 20 days with an investment of $1.5k.
That woman transformed my entire life for the better. Among the folks I've met, June appears to be the most trustworthy. I'm surprised you know her as well.
commerical ?
Commercial ?
commercial?
Commercial question mark
Commercial?🙏🤓
Commercial!
commercial?
Commercial?
commercial?
Commercial?
Commercial?
Commercial?
Commercial?
Commercial?
Commercial ?