Traps to avoid when planning an SMSF property plunge
The biggest mistakes include rental income not covering the loan and failing to generate a retirement pension.
Investors planning to use a self-managed super fund to purchase a property during the property boom need to balance possible profits with higher borrowing rates, running costs and strict rules about minimum pension requirements.
They should also be alert to spruikers who are making the most of price rise euphoria by encouraging investors to gear their retirement savings and join the charge into real estate.
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