The property market could be in for a quick succession of ‘panic buying’ following new rules for how Aussies can spend their super on property investments.
This is according to Oasis Property CEO Gavin McPherson, who argues that the changes could see younger people viewing self-managed super funds as an easy way to get into property investing.
“It probably won’t be much longer [until] Super companies will specifically start to target them knowing this,” McPherson says.
McPherson warns that this new group of property investors need to thoroughly research and understand the market before rushing into it.
“Buying a property too close to your borrowing limits and expecting that the market will grow would be a stupid approach to make. While it may grow, it isn’t the growth that is hurting you. It’s the temptation to do it repeatedly. Before you know it you have six properties and the market turns. Then, while trying to juggle six balls in the air – you drop them all.
“I’d suggest Gen Y have a long way to go before property is relevant to their superannuation.”
