Property

Self-Managed Super Fund (SMSF)

Using your self-managed super fund (SMSF) to purchase a property portfolio is a popular investment strategy due to the level of control it permits. However, as per any investment decision, it pays to explore all the aspects to ensure it is the right decision for you.

While buying property through a SMSF is not a new concept, the rules have changed recently, meaning you can now also borrow money to supplement this purchase.

There are a number of mandatory rules you must comply with when buying your SMSF property:

  • The property must have the sole purpose of providing retirement funds to its members
  • The property cannot be purchase from a related family member
  • No fund members or related parties can reside in or rent the property
  • The property cannot be renovated or improved

A benefit of an SMSF property for small business owners is the option to purchase a property to use as your business premises, allowing rent to be paid back into your fund. Another key benefit is that earnings within a super fund are taxed at only 15% which is considerably less than the marginal tax rate most workers will incur, with the pension phase of the fund being tax free. In addition, capital gains tax varies according to the phase of the fund too, set at 10% for properties held for longer than 12 months.

While there are many benefits to a SMSF property strategy, it is important to understand the costs of setting up a fund to ensure it aligns with your retirement goals.

Loan Studio Financial Advisor, Brendon Honeyford, can take you through the SMSF option in comparison to your current superannuation scheme to ensure it aligns with your overall retirement goals and investment strategy.

#AskLoanStudio

With hundreds of videos, fact sheets and blog articles #AskLoanstudio is your very own financial info hub. 
Take a look at our recent articles on Property.

Blog 1100x733 record offset balances

Homeowners nearly four years ahead on their mortgage repayments

Australian homeowners are loading up their offset accounts in record amounts, so much so that the average household is now almost....
Read More >
Blog 1100x733 cars 2021

What was Australia’s top-selling vehicle in 2021?

Some of us buy cars for work, others for play. So it’s no surprise that the top two cars in 2021 can do both. But which vehicle....
Read More >
Blog 1100x733 BNPL Christmas

Don’t drown in Buy Now Pay Later debt this Christmas

Christmas is fast approaching and there’s a good chance you’ve started turning your attention to gifts for family and....
Read More >
Blog 1100x733 fear debt

How many SMEs find it difficult to repay business loans?

Ever thought about taking out a loan for your business but hesitated because you were worried about meeting your repayments?....
Read More >

Planning Your SMSF

Want to learn more about planning your Self-Managed Super Fund? 

Go

Want advice on your SMSF?

Talk to us