Are you a first home buyer considering superannuation to buy a property as an investment? If you are and you are having second thoughts then you should seriously find out everything you can about property investment and returns. This is an option that can give you long-term growth and good return in your retirement years, or is there something better out there? Investment in a property is often considered low risk, but in the current global economic roller coaster there is no such thing as low risk let alone no risk. There are better ways for you to invest your money, options that have little limit and those that give better return on your investment.

Should you use superannuation to invest in property

If what you have read about superannuation has got you thinking of using it to invest in a property the first thing you should do is find out more about the advantages and disadvantages of using superannuation to enter the housing market. Before you sign up, you have to realise that property investment will never be low or no risk. Even if there is a general acceptance that properties increase value with time there are certain factors that affect your capacity to profit over time. Factors like location, quality of the building and market fluctuations are very real and in the event that there is a slump in the market you may lose money in bad investment.

Before you enter into housing market investment using superannuation, especially if you are a first home buyer, you need to know about the actual costs. The price of investing in a property is often more than you initially thought they’d be. Do your homework and make sure you know all about the fees, fees like real estate fees, solicitor fees and other fees that come with investing on a property.  These are fees you will need to be taking into consideration when buying and selling so be sure to list them when calculating for return on your investment. You don’t want to be surprised that you are not getting what you initially thought you would. If you are investing in a rental, you also have to consider the cost of upkeep and property management costs.

Ultimately, a first home buyer considering investing in property should get into the deal with eyes wide open. You cannot predict how the market will be in a few years down the line and in the event that the market fails then you can get stuck with a house that you cannot even sell at a price that could let you break even. If you have been led to believe that using superannuation will protect you from market fluctuation, you are dead wrong. Any investment will depend on market performance. Be cautious, and learn more about the housing market before you start digging into your superannuation.

After all, superannuation is there to fund your retirement and it shouldn’t be touched until you actually retire. So if you’re really interested in investing in property, try applying for loans like home loans, debt consolidation loans or try refinancing your mortgage with great rates at NSW Mortgage Corp.