Should self manage and put it all into buying investment properties.Even starting at 230k you wont have 3 million in super by the time you retire.
you are doing your math's wrong.
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Should self manage and put it all into buying investment properties.Even starting at 230k you wont have 3 million in super by the time you retire.
you are doing your math's wrong.
Should be more than that, are you not adding super growth each year. Unless I'm totally fluffing this
10k - each year contribution without inflation
1.1 - 10% yearly super fund growth on average
(230k+10k)*1.1 = 264k
(264k+10k)*1.1 = 301.4k
That's the next two years unless I'm ballsing this up
I'm not sure but 3 million is a huge super number. maybe the calcs are a bit off. I don't think super is cumulative interest year on year.
My projected Super balance at retirement is 1.2 million based on;
- my salary of 170k
- Age of 33
- Current Super Balance 95k
- Employer Contributions of 12%
if i take your calculation method of (90k+10k)*1.1 and apply it to myself I get the below.......Doesn't seem right.
Age 65 - $4.1m of super........
Here you go, I quickly did it with a growth rate of 8% p.a and applying fees and taxI'm not sure but 3 million is a huge super number. maybe the calcs are a bit off. I don't think super is cumulative interest year on year.
My projected Super balance at retirement is 1.2 million based on;
- my salary of 170k
- Age of 33
- Current Super Balance 95k
- Employer Contributions of 12%
View attachment 1285770
if i take your calculation method of (90k+10k)*1.1 and apply it to myself I get the below.......Doesn't seem right.
Age 65 - $4.1m of super........
View attachment 1285779
I'm sitting at 230k in super at 33 years old, I started full time work at 16 and was adding extra until a purchase a house.
All I can do is use prior results for a rough guess and super grows at 10% on average.
You're missing the 15% tax on super
Also haven't included management fees (which can really eat into over time)
And 10% is a pretty generous assumption by any standards, most calculators would probably use something between 7-8% (unless you plan on staying high growth option even in your 60s)
Thanks, looks like I'll need to buy more property then to support myself.The closer you get to retirement the lower the return on your super, for 2 reasons, (1) the greater the return the greater the risk. You wouldn't want to risk all that $$$ you have accumulated chasing 10% when you can get 5% with far less risk. (2) 5% of $1m (your balance later in life) is the same as 10% of $1/2m (your balance earlier in life)
Here you go, I quickly did it with a growth rate of 8% p.a and applying fees and tax
View attachment 1286797
Which comes out just a bit more than the calculator.
Bad news for you, it's all over.Better not burst before mid year as I got two properties to sell to fund a new bigger better build.
LOL, 1.7 mill is enough to support yourself.Thanks, looks like I'll need to buy more property then to support myself.
In 1992ish all economists predicted they would go lower after initial crash.I think I see a pattern:
rising house prices: ‘experts’ predicting house prices to ‘crash’
falling house prices: ‘experts’ advising to buy cos house prices to rise sharply
There seems to be a complete absence of people predicting rising market to keep rising, or a falling market to keep falling, which is probably what happens 95% of the time
This is such a massive , difficult topic and one which I would love to see change within my generation.
The main finger pointing seems to be aimed at Negative Gearing fuelling speculation , which I agree with but feel that the majorities opinions are being clouded by the craziness that is happening in Sydney and Melbourne where ( correct me if I’m wrong) people are buying / building/ renovating all with the intent of flipping it as soon as possible to the next person with the same idea .
This is boom mentality that doesn’t last too long - maybe 2-3 years ( although Sydney seems to be an anomaly?)
To get to my point, and with full disclosure I am someone who has taken advantage of NG as a form of forced savings and investment for retirement.
Theres a difference between the majority of mums and dads ( like me) who buy a rental with the intent of keeping it till retirement and the crazy speculators fuelling this fire in Sydney/ Melbourne.
I can’t be certain but I’d be pretty sure that a lot of people like me who don’t understand shares and possibly haven’t contributed to super as much as they should have as it wasn’t so common in our earlier days or they may be self employed use property as an investment tool for retirement.
My message to those who are anti NG is to be considerate of people like us and also the fact that one day you may be in the position to take advantage of it as an investment tool .
Yes I think the laws around ownership of the property should be strengthened ( property needs to be held for 3-5 years instead of 12 months before CGT is applied, perhaps cap the amount of properties that can be owned to 3 including the primary residence, tighter controls on overseas investment and who actually owns the property)
But as far as NG being a drain on the economy when in reality it is a great tool to provide rental accommodation , maybe aim your angst at the Googles , Facebooks , Mining Companies , corruption etc draining massive amounts of cash out of the country. If you could harness that money to be put towards more public housing you would see real change.
I hope so. But in expressing such hope, i fear for the younger gen who have already committed to grossly inflated purchases.
This is very true and same where I liveThe problem now is all of the long term rental stock is being swallowed up by Airbnb and other short term rental options. Why have a family living in your house paying you $4 or 500 a week in rent when you can jam it full of beds and rent it out for $1,000 a weekend and be able to use it yourself when you want?
I live on Phillip Island, there are currently 3 rentals available in Cowes where I live and only 7 others on the rest of the island. Families are posting almost daily on the local fb buy, swap and sell pages, desperate for a rental for them and their families.
I see stories almost daily from WA, NSW and Qld about a massive rental shortage.
That too. My other concern is that prices escalated so much so quickly that without parental assistance many first home buyers have to borrow alarmingly high amount to get into the market. This is going to have enormous consequences on relationships, family, children and health. Young couples may have less real choice about selling.I guess it will really only affect them if they want to sell.
This is very true and same where I live
This Pandemic has just created the perfect storm
Everyone traveling nationally so chewing up all holiday accomodation
Then they decide they want out of the cities so sell up and move .
Once they find a place they need to wait till a build happens , chewing up rental accommodation.
Meanwhile investors taking advantage of low interest rates are buying up left right and centre trying to take advantage of this rental squeeze .
This stupid pandemic has got a lot to answer for .
In 1992ish all economists predicted they would go lower after initial crash.
In 1987 they said it would fall lower than expected.
Maybe you're under 50.
WA shutting their borders to eastern state fifo workers and telling them that if you want to work in WA then you need to move here, the locals were cheering for this. So a lot did relocate to WA and took all the rentals and the locals were screaming about it.
Be careful what you wish for sometimes.
Also a lot of people returning from overseas and moving back into their homes all over the country.
I don’t reckonIMO, when all those people remember why they left in the first place and return to wherever they went (when the pandemic is over) ...that exodus will trigger the collapse of the housing market because it won't happen over years it will be a sudden thing.
I don’t reckon
IMO we are going to get our doors beaten down by immigrants from all over the world wanting to move here.
It’s proven the safest place for a pandemic and is a land of opportunity and prosperity.
Imagine the stories that immigrants that have moved here in the last 5 years are telling the folks back home
“ yeh we just arrived in Sydney , bought a house in ........... for $500,0000 next thing we know it was worth $1 million , you’re not gonna believe this place. Get over here !”