Invest in Real Estate Using Self-Managed Super Fund
Not too long ago, everyday Australians had very few options when it came to significantly increasing their retirement wealth using Superannuation. Today, there are many options available to them thanks to legislation changes that have occurred around Self Managed Super Funds and property investment.
Most Australians know that in recent years managed Super funds have performed very poorly. In fact, many people have found that their superannuation nest eggs have actually been going down in value because of that. With a Self Managed Super Fund, property investment is now proving to be a great way to give people greater control over their Superannuation returns. You see, thanks to changes in Government legislation in 2008, Self Managed Super Funds can now borrow money to buy property. That means property investors now have more choice too. They can now invest in property using their Super Fund instead of as individuals.
Financial institutions have special provisions surrounding Superannuation Fund loans and will lend up to xx% of the value of the property to a Super Fund.
Another reason why investing in Real Estate using a Self Managed Super Fund is becoming increasingly popular is that it offers many more tax advantages than investing in real estate the traditional way.
To begin with, there’s a 15% tax maximum on rental income that your investment property generates. There’s also a massive reduction in Capital Gains Tax when you sell the property. Not only that, there are also the normal tax deduction benefits involved with owning an investment property including the ability to claim interest and deductions on property-related expenditure.
Some property investors choose to start a Self Managed Super Fund using as little as $50,000 but a typical Self-Managed Super Fund is started with around $200,000 to $250,000 with funds rolled over from their Managed Super fund.
When looking for a Superannuation Fund loan for your investment property purchase it’s important to note that not all lenders are the same. Some institutions have loan packages that are specifically designed for Self Managed Super Funds but the features vary a lot between lenders so it’s important to shop around. Your Wealth Concerns mortgage broker has a great understanding of the Superannuation Fund loan packages that are available and how they stack up.
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If you would like to discuss your specific circumstances call us on 1300 700 496 or alternatively text your name and number to 0411 320 962 and we will call you.