Attention SMSF property investors, it is about time you have wisen up and start avoiding these 5 common mistakes that every beginner SMSF trustee makes. Learn about them and start becoming a better investee when it comes to property related financial buying and selling.
What exactly would you need to be sure of your property related investments? There is no secret sauce, but for beginner in SMSF or Superannuation beginners it is extremely helpful to know these 5 common mistakes. You will not become an expert, which is actually a SMSF expert’s job who can manage or advice and audit your SMSF for you.
5 Common Mistakes SMSF Property Investors Must Avoid
Read and learn about these mistakes that all experienced SMSF property investors have made when they started.
1. Risk v/s Reward
Some people are risk and reward driven and they do not care what happens. If they feel it from their gut – they are sure about it. In SMSF property investments we can seriously become champions only after few years of experience. This comes from interacting with SMSF experts and senior trustees who know the investment game better than you do.
2. DIY – Not Consulting an Expert Advisor
Big and trivial mistake that all SMSF property investors have made and will make again is doing it on their own. SMSF investment, management and auditing comes with a bill attached. So, when SMSF members are buying property they like they just want to get on with it on their own and trying to save this SMSF expert fee leads to losses. Always go for consultation and save your hard earned money, it is better to have an expert or you will regret later.
3. Not knowing Property and Government Laws
If you are not aware of the property laws and government in your state, it will be a diastral to invest via SMSF in this property. Such complications can be tackled by experts only. Think of long term gains and compliant is very crucial to investments.
4. Being Hasty
When you like a property or someone recommends it you or your family, it is hard to say no. One knows that SMSF property investments will aid buying this property and help in rebates but this is just basic factual information. The real rules and regulations are known to experts only. So, being hasty or buying property hurriedly can lead to more problems than you as a rookie SMSF property investor will ever expect.
5. Losses in Retirement Phase
Over the course of few years, when you are about to retire, the returns from the property may or may not be favourable to you. Discuss this at length and it will vary depending on the kind of property or the area you are. One of the most common mistake and it leads to losses in retirement phase.
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