Self Managed Super Funds (SMSF) allow people to engage with their nest egg in a way that is difficult to do via an industry or retail super fund. They’ve grown by 27% the past 5 years and hold total assets worth $590 billion. Decisions made now can set you up for a prosperous, comfortable retirement. Which is why many are choosing to take a more hands on approach to superannuation by investing in residential property.
Using Self Managed Super Funds to invest in property is also gaining momentum, up over 85% since 2011, especially as people look to spread risk through a diversification of investments.
Partnering with experts around these sorts of decisions is always key to a successful outcome, but the Australian Taxation Office website has a good base of information to start you thinking. Generally speaking, you can buy property through Self Managed Super Funds if the sole purpose of the property is to provide retirement benefits to fund members.
Negative Gearing provisions can also be used when borrowing funds through an SMSF, so interest and other costs tied to holding the property like council rates and maintenance, can be offset against other taxable earnings, reducing the tax payable by your fund.
Capital Gains Tax is capped at 10% if a fund holds the property for more than 12 months, but if the property is sold after you retire and your SMSF is in ‘pension phase’ you could potentially pay no Capital Gains Tax. It’s in the Government’s interest to make this work for people. A well planned, well resourced, self-funded retirement reduces the burden on government in the long run.
Seek investment advice first and see how investing in property through Self Managed Super Funds can help safe guard your future. Then come and see Fisk & Nagle Real Estate to find that property that will work for you.
Be warned though, scammers are at play in this market. Fake websites, glossy information packs and generous rewards for buying property are all part of the crook’s tool kit.
Work with people you trust and who have a history built on helping people achieve their retirement goals. The security of bricks and mortar adds to that peace of mind.
*Sources used, www.yourmortgage.com.au www.smh.com.au/money www.realestate.com.au and www.smartmoney.gov.au