Superannuation or Investment Property?

Here is another article relating to investment property versus superannuation. It is an interesting debate and, sadly, one that is unduly infulenced by political preferences:

INVESTMENT and Financial Services Association chief executive John Brogden yesterday blamed the federal government's changes to superannuation last year for prompting people to turn to investment properties for their retirement savings.

In an interview with The Australian, Mr Brogden said there was also a concern that there would be further
cuts in the May budget to the caps on allowable contributions to superannuation beyond the compulsory 9 per cent superannuation guarantee levels.

He said concern about the Rudd government's superannuation changes, following the surprise measures in last year's budget and uncertainty about the federal government's plans for superannuation, had encouraged people who had some extra savings to look for other means of investment, including investment properties.

"Cutting the cap on superannuation contributions and the prospect of it being further cut back in the budget means that people who want to top up their super before retirement will go off and find another form of tax-effective investment -- including negative gearing on property investments," he said.

(Source: The Australian 1 April 2010)

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