Principle 1: Use other people’s money
Principle 2: Build a portfolio
Principle 3: Never, Never, Never Sell
Principle 4: Harvest the equity

Principle 1: Use other people’s money.

In superannuation you can now use:

1. The Bank’s: Federal legislation now allows self managed superannuation funds to borrow to buy investment properties through an ‘Instalment warrant’.
2. The Boss’s: By law, your Employer contributes at least 9% of your gross income into superannuation. Until now, you’ve probably been stuck with having to invest into shares or managed funds, you may be very concerned that having your entire super in the sharemarket is hindering, not helping your financial independence. As Federal Superannuation Minister Nick Sherry recently said "We are going to see the deepest and widest negative rates of return reports in the next six months for the financial year 2007-08 -- averaging minus 6 per cent," [ source: The Australian, Wednesday 9th July ]. Now the money your employer pays into super could go towards purchasing your next property!

Principle 2: Build a portfolio.

Imagine this: your next property could be purchased using the money you have already built up in super and its’ on-going costs could be paid for by your Employer’s contributions to super plus the rent from the property. By making use of the money you have built up in super you could build TWO property portfolios – one in your personal name and one in your superannuation!

Principle 3: Never, Never, Never Sell!

Never has this been truer than in superannuation, where the tax advantages both now and as you move into retirement are truly amazing.

Principle 4: Harvest the equity

A major advantage of superannuation is that less tax to pay means more equity in your portfolio - and not in the Tax Man’s hands.