What is the most common and profitable investment for a good retirement in Australia?

Question

I've seen a whole lot of questions in this website about good retirement investments in a range of countries, but none asking about Australia.

Let me explain a little further my doubts: I'm currently 21 and studying for a BsC in Computer Science in Brazil. I'm planning to get my working visa for Australia as soon as i graduate and I'm not planning to return to this country (you can imagine the reasons, huh). The problem is that i'm curious about how aussies manage to get a good income after retirement. I've done a lot of research about retirement plans on Australia but haven't found a single option that convinced me that that's the best option.

Given a scenario that working as a programmer (my current job and hopefully the one i spend the rest of my life doing!) and earning a ~100k AU$ P/Y (that's a low bet, just for the sake of this example) during my working years, what would be a good investment to ensure a good retirement for me and my partner ? By good, i mean a monthly income that can pay my bills while also giving me the option to travel once in a while, change my car or whatever.

Buying apartments and renting them (shared accomodations or whatever)? Stocks?

Despite this question being very specific, i'm not expecting a very specific question, since economy is changing everyday and what is a good investment today may not be tomorrow. I just want to know the opinion of an Australian regarding future planning. Thanks in advance!

Answer 1

In Australia anyone thinking about retirement should be concentrating on superannuation. Contribution is compulsory (I think the current minimum contribution rate is 9.5% of salary) and both contributions and investment returns are very tax efficient.

The Government site is quite comprehensive - http://www.australia.gov.au/topics/economy-money-and-tax/superannuation - have a read and come back with any specific questions.

Answer 2

I don't look to Super or Pension, I am working on self funding.

My method is work in Sydney and buy a house in Sydney (I bought 6 years ago). Let my property rise on this stupidly insane Sydney growth (my place has risen by 76% in the last 6 years and thats in a "bad" economic climate).

Each time the equity hits a certain point get an investment property on an interest only home loan and rent it out. Build this portfolio up as much and as quickly as you can.

Repeat over and over until I decide to retire.

Sell up investment properties and buy NOT IN SYDNEY where it is much cheaper and move there, keep the main house I always lived in as by this time I will own it outright, rent it out for an income that will more than sustain me in my retirement. Although there is also merit in the idea of sell the one you lived in and use the money to pay of one of the investments, this way you avoid capital gains tax. This idea came to me last night :)