Right from time immemorial we all have heard and read about the importance of savings and investments. To have a trouble free life in the old age, the insistence is made on present day savings. Ultimately the aim of savings is to utilize it when it is much needed the most. There are so many ways of investment. At the same time there are different forms and means of investments. Investments should always be in such a way that it is able to bear the maximum fruits on the long run and together. Wise people prefer to buy investment SMSF property with super. In fact according to recent survey, even young women and men have started making the choice of investing in properties than any other choices.
Never misunderstand the word negative gearing. In practicality, it is not so. This is only a positive indicator. Investment advisors use this word negative gearing to ascertain the actual cost worthiness of the property to the bought or already purchased. Now a day it is very common for employees to go for a property loan. The loan amount which is being disbursed will be based on the actual earning of the applicant or applicants and after careful scrutiny of the papers, the amount to be offered as loan will be calculated and informed. While making these calculations, the land value or the net asset value of the property on discussion will be weighed. If the loan amount to be sanctioned is more than the property value and in future if the bankers or the money lending agencies feel that there is a depreciation to happen, then this is termed as negative gearing.
The term smsf property investment denotes the self managed super fund property investment. After retirement, when people get money as their superannuation, without wasting it and spending on unnecessary things lavishly, the retired man can start earning double and more income if he plans on the smsf property investment. Since this is a self managed fund and knows what exactly the liquid cash in his hand is, he can make his decision according to the funds position. Sometimes he may restrict property investment with this, or he may go for more by seeking an expert for further fund raising.