ASK NOEL

The article warns caution. While your friend suggests using some super to buy a Florida house, Noel Whittaker stresses two long‑standing rules: don’t buy property you can’t easily visit and don’t take financial advice from friends. Reports about American real estate note numerous hidden costs, and given your age and relatively low income you should be extremely careful and seek professional advice before using super to invest overseas.

The piece highlights several pitfalls: hidden or unexpected costs in American real estate, the difficulty of managing property you can’t visit, and the risk of relying on informal advice from friends. These issues can erode returns, so thorough due diligence and professional guidance are recommended.

Yes — the article says it’s possible to make money in overseas properties and depressed markets can offer bargains. However, profitability is not guaranteed because of hidden costs and management challenges, so weigh potential gains against the extra risks and get specialist advice.

The article does not give legal detail but advises extreme caution. Key considerations from the article: ensure you can inspect and manage the asset, avoid relying solely on a friend’s recommendation, be aware of hidden overseas costs, and obtain professional advice about super rules and tax implications before committing funds.

According to the article, income from both managed funds and direct shares is assessable income. Managed funds are unit‑based and you pay capital gains tax (CGT) when you sell units on any increase in value between purchase cost and redemption value. The same basic principle of assessable income and CGT applies to direct shares, though the article notes differences can arise from how a managed fund trades.

The article explains that gains from a managed fund flow through to your tax return and are assessable. If the trading results in capital gains that are assessable in your return, those gains will generally be taxed at your marginal rate. Noel Whittaker recommends checking the fund’s trading activity and getting tax advice for your situation.

If a managed fund trades extensively, the trading gains can be passed through to unit holders and show up on your tax return as assessable capital gains. That can increase your taxable income in the year and potentially raise the tax you pay, so choose funds that match your tax preferences and consult a tax adviser.

Based on the article: visit the property in person if possible, don’t base decisions solely on a friend’s recommendation, research and budget for hidden overseas costs, consider how the investment fits your age, income and overall portfolio, and seek professional legal, tax and financial advice before using super or committing to an overseas purchase.