Salary sacrificing into super funds, buying investment property... how should we invest?

Q.

I am 49 years old earning $72k. My 53 year old husband is not working but earns $15k interest on a term deposit of $200k. We own our home worth $700k, and our annual expenses are $35,000. We are looking at buying an investment property but are unsure which scenario would be best for us: I salary sacrifice $40k annually into super for the next 10 years and husband buys a $500k investment property borrowing $400K and taking $100K from his term deposit; or I buy the property in my name borrowing $500k using home equity.

Your first decision should be whether a geared investment property outside super would give better long term returns than a good share portfolio in your husband's name inside super. If you have your heart set on property, I favour the positive gearing scenario as long as you diversify into shares within your own super fund.