Most Australians know their superannuation is there for retirement — but did you know you can actually use it to invest in property?
With the right setup, your super can be used to buy an investment property through a self-managed super fund (SMSF). It’s a strategy more Aussies are exploring to grow their retirement savings, but it comes with some key rules and responsibilities.
How It Works
To buy property using your super, you’ll need to set up an SMSF. Unlike your standard super fund, an SMSF gives you full control over how your super is invested — including the option to buy real estate.
Your SMSF can even apply for investment loans to help purchase the property. This is done through a structure called a Limited Recourse Borrowing Arrangement (LRBA), but borrowing within super is more complex than a regular home loan.
That’s where a trusted mortgage broker can really help — they’ll guide you through the process, help you understand your borrowing power, and connect you with lenders who offer SMSF loans.
What Are the Rules?
Before jumping in, there are some important conditions to be aware of:
Why Use Super to Buy an Investment Property?
It’s Not for Everyone
Is It Right for You?
Using your super to buy an investment property could be a smart move if:
Let’s Chat
Interested in using your super to build wealth through property? As experienced mortgage brokers, we can help you understand your borrowing options, compare investment loans, and work alongside your accountant or adviser to ensure it’s the right fit.
Whether you’re planning a holiday, consolidating debt, or covering a big expense, a personal loan can help you reach your financial goals. But with so many options available, how do you know which loan is right for you?
Here’s a simple guide to help Australians choose the right personal loan with confidence.
1. Understand Why You Need the Loan
Before you borrow, clearly define your purpose. Are you looking to:
Some lenders may not lend based on your purpose.
2. Compare Interest Rates
Personal loans come with fixed or variable interest rates:
Make sure you compare the comparison rate, which includes the interest rate plus most fees, giving you a clearer picture of the loan’s true cost.
3. Check Fees and Charges
Some personal loans come with:
Read the fine print to avoid nasty surprises down the track.
4. Look at Loan Features
Some lenders offer handy features like:
These features can help you pay off your loan sooner and save on interest.
5. Know Your Credit Score
Lenders assess your credit report when deciding whether to approve your loan and at what interest rate. A better credit score can mean access to lower rates. You can check your credit score for free through providers like Equifax, Experian, or illion. Some lenders do not lend if you do not have a credit score.
6. Speak to a mortgage broker
A mortgage broker can help you compare different lenders and loan options based on your individual situation. They’ll consider your goals, income, credit score, and lifestyle to match you with the right loan.
In a world full of subscriptions—streaming services, fitness apps, meal kits—it’s easy to lose track of where your money is going. But what if cancelling just one unused subscription could give your savings a healthy boost? Whether you're saving for your first home, planning to refinance, or working with a mortgage broker to explore your lending options, every dollar counts.
Why It Matters
Subscriptions are often set-and-forget expenses. You sign up, use them for a while, and then they quietly chip away at your bank account month after month. That $15 or $30 per month might not seem like much—but over a year, it adds up to $180 or more. Redirecting that money into savings can fast-track your borrowing goals, especially if you're preparing to apply for home loans.
Step 1: Audit Your Subscriptions
Take five minutes to check your bank statement or app store history. Identify subscriptions you no longer use or rarely touch. Common culprits include:
Step 2: Cancel One (or More)
Choose just one to start with. The idea isn’t to strip away all your enjoyment—it’s to become more intentional with your spending.
Step 3: Redirect the Savings
Now, here’s the trick: Don’t let that money disappear into everyday spending. Set up an automatic transfer for the same amount into a dedicated savings account. This could be your home deposit fund, emergency savings, or even a mortgage offset account to reduce interest if you're already paying off a home loan.
Real Impact Over Time
Let’s say you cancel a $25/month subscription and save that amount consistently:
Final Thoughts
Building wealth and improving your financial health doesn’t always require drastic changes. Sometimes, it's the simple things—like cancelling a single subscription—that can make a big difference.
When used wisely, debt can be a powerful tool for building long-term wealth.
Understanding the Difference: Good Debt vs Bad Debt
It’s crucial to understand the difference between good debt and bad debt.
Key takeaway: Good debt helps you build wealth; bad debt drains it.
1. Build Wealth with Property
Property investing is one of the most common ways to create wealth using debt.
If the property grows in value, you benefit from capital gains. At the same time, if it’s rented out, you earn rental income — which may cover your loan repayments.
You’re essentially using the bank’s money to buy a growing asset, while your tenant helps pay it off.
Interest on investment loans is usually tax-deductible, making property even more attractive for wealth creation.
2. Build Wealth with Shares
Another way to build wealth with debt is by borrowing to invest in shares, known as margin lending.
If the share market rises, your returns are amplified. This allows you to grow your investment faster than you could using your own funds alone. However, this strategy comes with higher risk — if share prices fall, your losses are also magnified.
3. Use Equity to Grow Your Property Portfolio
If you already own property, you may have equity — the difference between your property value and what you owe on it. Many people use this equity as a deposit on a second property or to invest in shares or other income-generating assets.
This approach is ideal for those who want to scale their investments using existing assets.
4. Tax Advantages of Investment Debt
Interest on loans used to invest in income-producing assets is generally tax-deductible. This applies to:
These deductions can significantly reduce your taxable income, boosting your net return on investment.
Final Thoughts: Smart Debt Builds Wealth
Using debt to build wealth can grow your net worth over time. However it is important to speak to a professional such as a financial adviser or mortgage broker.
What is the biggest wealth killer in life?
It’s not bad luck. It’s not taxes. It’s not even a lack of investing.
The biggest wealth killer in life is – “Keeping up with the Joneses”.
What Is “Keeping up with the Joneses”?
Keeping up with the Joneses happens when your expenses increase in line with your income. Each time you earn more—whether it's through a pay rise, bonus, or career upgrade—you start spending more. You move to a nicer home, drive a flashier car, upgrade your wardrobe, and dine out more often.
Suddenly, the extra income that could have gone towards building long-term wealth disappears into day-to-day spending. Over time, this can leave you stuck in a cycle of high earnings and high expenses, with little or no wealth to show for it.
If your spending always rises with your income, you will never build true financial freedom.
How “Keeping up with the Joneses” Destroys Wealth
Build Wealth That Lasts
If you want to build lasting financial freedom, resist the urge to upgrade every time your income does. Instead, stay focused on your long-term goals. Save consistently.
Retirement should be a time to enjoy a comfortable lifestyle. However, many retirees look back with regret, wishing they had made better financial and lifestyle choices. With early planning and guidance from a professional like a financial adviser or mortgage broker, you can avoid the most common retirement mistakes.
Below are the top four retirement regrets and practical ways to avoid them.
One of the biggest regrets retirees have is not saving enough to sustain their desired lifestyle. Many underestimate how much they will need to cover expenses like insurances, health, travel, and daily living costs.
While early retirement sounds appealing, some retirees find they miss the structure of work. On the flip side, those who work too long often regret not enjoying their wealth while still in good health.
Many retirees regret not making smarter financial decisions, particularly when it comes to passive income streams.
Many retirees regret not planning how they will spend their time, leading to boredom and even depression.
Retirement should be a time of relaxation and enjoyment—not regret. Working with a financial adviser or mortgage broker, you can ensure that your savings, investment properties, and superannuation provide a stable and stress-free retirement. The key is early planning and making smart financial decisions.
If you want to grow your wealth instead of spending time watching Netflix, here are three productive actions you can take:
1. Invest in Your Financial Education
Instead of watching another episode, spend time learning about money management, investing, and wealth-building strategies. Some ways to do this include:
2. Start a Side Hustle or Passive Income Stream
Instead of passively consuming content, use that time to build an extra income stream:
3. Optimise Your Investments and Finances
Use your free time to actively manage and improve your financial situation:
Each of these steps brings you closer to financial freedom—way more rewarding than a Netflix binge!
Building long-term financial stability doesn’t require complex strategies or risky investments. Instead, it comes down to three simple yet powerful principles: living below your means, investing early and consistently, and continuously educating yourself on personal finance. By following these rules, you can set yourself up for financial success and long-term wealth.
1. Live Below Your Means
One of the most effective ways to build wealth is to spend less than you earn. This doesn’t mean depriving yourself but rather being mindful of your expenses and making smart financial choices.
How to Live Below Your Means:
By controlling your spending and prioritising savings, you free up more money to invest in your future.
2. Invest Early and Consistently
The earlier you start investing, the more time your money has to grow through the power of compound interest. Even small, regular contributions to investments can lead to significant wealth over time.
Best Ways to Invest Early and Consistently:
The key is to stay consistent
3. Educate Yourself on Personal Finance
Knowledge is power, and when it comes to money, the more you understand, the better decisions you’ll make. Financial education helps you avoid costly mistakes and identify opportunities to grow your wealth.
How to Improve Your Financial Knowledge:
The more informed you are, the more confident you’ll feel when making financial decisions, whether it’s investing, budgeting, or planning for retirement
Final Thoughts: Take Control of Your Financial Future
Wealth-building isn’t about luck—it’s about following smart financial habits consistently. By living below your means, investing early, and educating yourself on personal finance, you set yourself up for a secure and prosperous future.
Buying your first home is an exciting time, but it can also be a daunting process. Understanding the essentials of home loans, working with a mortgage broker, and maximising available government grants can make your journey to homeownership smoother.
Understanding Home Loans
A home loan, or mortgage, is a loan provided by a lender to help you purchase a property. As a first home buyer, it’s crucial to understand the different types of home loans available:
How Much Deposit Do You Need?
Most lenders require a minimum deposit of 5% of the property’s purchase price. However, if your deposit is less than 20%, you may be required to pay Lenders Mortgage Insurance (LMI), which protects the lender if you default on the loan.
First Home Buyer Grants & Schemes
The Australian government offers several first home buyer assistance programs, including:
Checking your eligibility for these schemes can significantly reduce the upfront costs of buying a home.
What Additional Costs Should You Consider?
Beyond your deposit, there are other expenses to factor in when buying a home:
Steps to Buying Your First Home
The Role of a Mortgage Broker
A mortgage broker acts as an intermediary between you and potential lenders. Instead of going directly to a bank, a mortgage broker can compare multiple lenders, negotiate better home loan terms, and help streamline the application process. This can save you time, money, and stress when securing a mortgage.
Final Thoughts
Buying your first home is a significant financial decision, but with the right knowledge and guidance from a mortgage broker, you can navigate the process with confidence. Understanding home loans, leveraging first home buyer grants, and preparing for extra costs will ensure you make informed decisions on your homeownership journey.
Can I Pay My Mortgage with a Credit Card? Everything You Need to Know
If you’ve ever found yourself short on cash before your mortgage payment is due, you might have wondered: Can I pay my mortgage with a credit card?
The short answer is usually no—most lenders do not allow direct mortgage payments via credit card.
Why Mortgage Lenders Don’t Accept Credit Cards
Most lenders prefer direct debit, bank transfers, or BPAY for mortgage repayments. Here’s why they avoid credit card payments:
Alternatives for Managing Your Mortgage Repayments
If you’re struggling with mortgage repayments, consider these safer and smarter alternatives:
1. Speak to a Mortgage Broker
A mortgage broker can help you find a better home loan deal, negotiate lower interest rates, or even help you refinance your mortgage to reduce your repayments. If you're facing financial difficulties, a broker can also provide guidance on hardship assistance programs.
2. Negotiate with Your Lender
If you're facing financial hardship, contact your lender as soon as possible. Many banks offer hardship assistance, which may include temporary repayment pauses or reduced payment options.
Final Thoughts
While paying your mortgage with a credit card might seem like a convenient solution, the high fees, interest rates, and potential financial risks make it a poor choice in most cases. Instead, consider speaking with a mortgage broker to explore refinancing options or financial assistance programs that can make your home loan more manageable.
