I wanted to buy an investment property. Where should I invest instead?

June 3, 2026 — 5:00am

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I’m 48 and had planned to buy an investment property, but after the recent tax changes, I’m no longer sure it stacks up. Looking at the numbers, it seems I would still be heavily out of pocket each year, even after rental income, interest, maintenance and other costs are considered. I estimate the shortfall could be about $30,000 a year.

I’m now wondering whether I would be better off investing the same amount over the next 12 years into shares or ETFs, or, alternatively, making extra superannuation contributions. If you had to choose between investing in shares outside super and putting more into super, which would generally make more sense? I’m also interested in the trade-off between flexibility and access to money with shares, versus the tax advantages of super.

I agree that shares or ETFs may now be more attractive than an investment property, particularly if the proposed tax changes proceed. Your estimate of a $30,000 annual shortfall sounds realistic.

Superannuation is probably the optimum long-term investment vehicle because of its tax advantages. The drawbacks are that your money is generally inaccessible until at least age 60 and there are limits on contributions.

With all the new tax changes, is it time to start an SMSF?

Paul BensonMoney contributor

In your situation, I would first maximise concessional contributions – the tax-deductible ones. In this financial year, the cap is $30,000, including employer contributions, rising to $32,500 after June 30. Keep in mind that super is simply a structure that holds investments, so you can still invest in shares, ETFs and similar assets........

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