In this 3 min article, you'll learn;
​- Why normal super isn't getting Australians to a comfortable retirement
​- How SMSF's enable the use of leverage
​- What leverage is, and how it's so powerful
​- Using leverage in context of your goals
​- A real life example of leverage at work

Leveraging involves using borrowed funds to increase the potential return on investment.

Leverage is borrowing to have more capital to invest, even if you don’t have all the money upfront—it’s borrowing to boost your potential returns.

In property investment, this means borrowing money to purchase the property, allowing you to benefit from the property's total value growth, not just your initial deposit.

This strategy can significantly enhance your investment returns over time.

So what does that look like?

There’s a lot of numbers involved, but we’re going to break it down as simply as possible.
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Client 1 purchased a property in Coomera during March 2021. They used $195,100 from their super as the deposit.

The property has grown in value from $435,000 to $695,000. That’s $260,000 growth in equity.

The growth for this property has been 59.77% over 3.2 years. An outstanding result, and well above average. That’s equivalent to an approximate 17% annual growth rate. Stunning!

When you consider that the client used $195,100 from Super as their deposit, and now have an additional $260,000 in equity growth, their super investment grew by 133%. That’s equivalent to a 32.5% annual growth over 3.2 years.

When was the last time you saw that kind of growth in a traditional super fund in one year, let alone averaged over 3 years?

But this story doesn’t stop here!

When the client purchased the property they rented it out for $470 per week. The current rental estimate is now $670 per week. That’s an additional $200 per week or $10,400 per year in rental income.

To put an additional $10,400 a year into Super via your personal income - you’d need to receive a pay rise of approximately $94,000 per year*.

This is an extra-ordinary result. But as you’ll see in our other client results - the research our team has done has been well worth the result for all clients.

​*Based on 11% Superannuation contribution rate
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​This is the result of just one of our clients.  If you'd like to see what 14 other clients have achieved - see our full article here

While traditional super funds offer a straightforward approach to retirement savings, they may not provide the growth needed for a comfortable retirement.

Investing in property through your super, utilizing leverage, can potentially enhance your retirement savings. However, this strategy requires careful planning, a clear understanding of the associated risks, and professional guidance to ensure compliance with superannuation laws and alignment with your retirement objectives.
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* This post is for educational purposes only and is not intended to be financial advice​
​* All information presented are from actual client results
* Results from past performance should not be considered a guarantee or indicator on future performance
​​* Property in a super fund can only be used for investment purposes. Neither you or your family can live or holiday in the property
* Valuation & rent estimates taken from RP Data
* Annual growth estimates are approximate and based on total period growth
*Ownership periods are based on days owned
​* Investment growth is based on the deposit taken from Super and does not account for expenses or super contributions