The BBQ Question
You're standing at a mate's BBQ. Someone says they're using their super to buy property. Your first thought: "But I haven't even paid off my own house yet. Should I worry about super investing?"
It's the #1 internal debate for most Australians in their 40s. And the honest answer is: it's not an either/or question. It's a "what order and how much?" question.
What Most People Get Wrong
They think their mortgage interest rate and super return rate are the same calculation. They're not. Super contributions are taxed at 15% going in. Mortgage payments are from after-tax income - which means you're paying with dollars that have already been taxed at 32.5%, 37%, or more (Source: ATO individual income tax rates, FY2025-26).
Not comparing apples with apples. Comparing apples with oranges - and most people don't realise.
According to Adel Pearce: "The real question isn't 'should I invest?' - it's 'what is the cost of not investing while I wait?'"
When Paying Off Your Mortgage First Makes Sense
Your mortgage rate is very high and your combined super is still building
You have no emergency fund outside super
Debt keeps you up at night (emotional factors are real and valid)
You're under severe financial stress and the mortgage is a burden
Not always wrong. Sometimes paying down the mortgage is the right move.
When SMSF Investment Makes Sense Alongside Your Mortgage
You have sufficient combined super and the mortgage is manageable
You have 10+ years until retirement
Rental income from the SMSF property covers the SMSF loan repayments
Your compulsory super contributions are going in anyway - the question is what they're invested in
The Third Option Nobody Talks About
You don't have to choose. Many Delphi & Co clients maintain their mortgage AND invest through SMSF simultaneously. The super contributions are compulsory anyway - the question is what they're invested in. A default fund earning average returns? Or a real property generating rental income and capital growth at concessional tax rates?
Not doubling down. Making sure both sides of your financial life are working.
Work Out What's Right for You
This is general information, not personal financial advice. The Delphi Scorecard helps you understand your position, and if it makes sense, we can walk through the numbers in a free strategy chat.
For the full picture, read our complete SMSF property guide or check out the full cost breakdown.
Want to know where you stand?
Before you do anything, understand where you stand. The Delphi Scorecard gives you clarity in under 5 minutes.
Take the Delphi ScorecardRelated Topics
General information only. Not personal financial advice.