How To Buy Property With Super Funds – Tips To Go The SMSF Route


The long term economic crises that have eaten away at people’s savings have made real estate seem much more valuable than before as a tool for planning for a comfortable retirement. As a matter of fact, an increasing number of people are investing in property through their Lentor Modern Showflat superannuation funds. It hasn’t always been easy to invest in property using accumulated superannuation money since the costs associated were very high. However, there have been many changes in laws that simplify the process of how to  buy property with super funds.

Most people prefer to use an SMSF (self managed super fund) to invest in property and plan for their retirement years since this method allows them a simple way to

• Save on income tax
• Eliminate paying capital gains tax in the case of an investment property

Many small business owners also use this investment method to get the maximum benefit from owning property. They use their superannuation fund to buy commercial property to run their business from and then rent the property to the business, thereby reducing their operating costs. It is important to keep in mind, however, that the rental rates should be in keeping with existing rates in the market at that the time.

Important point to note: When a residential property is purchased with an SMSF, the trustees or any other member of the fund is not permitted to live in the property. This also applies to properties which have been purchased as holiday homes. There are strict penalties for this.

Since the rules concerning superannuation now allow people to borrow funds inside of an SMSF, increasing numbers of people buy property using this route. Keep in mind the following information regarding SMSFs:

– It is possible to buy not just residential and commercial properti

 

Leave a Reply

Your email address will not be published.