Paul Glossop: Hello guys, and welcome once again to Pure Property Investment one on one. I’m here again today with Tristan Scifo. Tristan, good to have you back in the studio. Tristan is a financial planner, also a wealth coach, does a lot of work with probably everyone from first time investors, people looking probably to set some goals, finances in place from the early stages, right through to retirement planning and everything in between, and that’s probably one part we want to discuss today, if that’s okay with yourself, mate.
With some of the changes to the May budget, one of the things we’re seeing come across the table for first home buyers is the first home super saver scheme, and there’s probably a little more detail yet, is there and we need an acronym for that, which I’m sure they do back in the backrooms of Canberra, but I’m hoping you might be able to share with our viewers a little bit about how that works and how that can potentially help first home buyers, and can they use that money potentially to invest as well, or is it a bit of a taboo topic?
Tristan Scifo: Great questions. Not taboo, it’s just that we don’t really have all the answers just yet, I’m sorry to say, but there’s some good news and some bad news. The good news is, if you didn’t know, Super, superannuation, is a great place to have money. Bigger picture, comparing it to having a property, sorry, comparing it to having a company, comparing it to having assets in your own name, comparing it even just to other trusts, it’s probably the best tax effective vehicle long term for holding any assets, so being able to, not just investing in your Super but being able to take money back out of your Super to use for a property is a really good idea, I think. It’s going to incentivize more people to save in Super and it will make it more feasible for first time investors to get their first property.
The bad news is I don’t believe it’s going to be usable for investment, so it’s only possible if you pull the money out to buy your own home, you going to have to live in it, and even if you intend for that to be an investment, there’s going to be a few boxes you’re going to have to tick off, and one of them is you’re definitely going to have to move into it as if it’s your own place, so it’s a bit of a win and a lose.
Paul Glossop: Yeah. It’s probably a word to the wise there a little bit about the fact that Super, as the vehicle it was intended on years and decades back is being utilized in a way that is quite useful , as a tax effective haven, giving younger people the ability to potentially look at sacrificing some of their wages, better their savings ability and probably set some good habits in place long term as well, which is another great opportunity for people even after the 2 years, where they can offset that cash, bring it back out, buy their home, maybe not from an investment perspective, but I think long term it’s going to allow people to get into the property market quicker whilst not having to pay as much income tax potentially along the way, so thanks for that insight, mate, and obviously there’s a lot of detail that goes below what we just talked about, top line, but if you do want to get in touch with Tristan to talk about how you might be planning to buy your own home in the next few years, months, weeks, whatever it looks like, and how you might be able to effectively use that new policy and maximize it for what it’s worth, his details are at the bottom of the screen.
Feel free to give Tristan and his team a buzz, and I’m sure he’d be happy to sit down and have a chat, and likewise, from outside, from a property specific perspective, we work obviously in the owner-occupied perspective and the investment property space, so feel free to give us a call if you have any property related questions and we’ll catch up with you. Cheers!