Property Investment with your Self-Managed Super Fund
For most of us superannuation represents a significant proportion, if not all, of our savings for retirement. With the many recent changes to the legislation governing Self-Managed Superannuation Funds (SMSF’s), investing with superannuation has become more attractive and more people are taking active steps towards managing their own superannuation through SMSF’s.
There are many benefits to setting up a SMSF; one of the most important is the ability to use your superannuation to now purchase investment properties. Making the most of this option provides significant tax and capital gains tax concessions, as well as great leverage as the major banks are now proving lending of up to 70% of the purchase price of the property. Essentially this means you can own an investment property for 10, or more, years and not have any capital gains tax to pay on it if you chose to sell it when you retire.
Examples of the many reasons why you should use your SMSF to invest in property are:
- Setting up a SMSF means you take control away from fund managers and choose your own investments; commercial or residential
- Unlike all other super funds, SMSF’s have the ability to borrow to invest
- You can repay the loan on the investment property much faster because of concessional tax advantages given to compliant SMSF’s
- You can pay off your investment property by using your employer’s 9% super contributions, plus rent received and salary sacrifice contributions.
- Couples can combine their existing super balances into their own SMSF, thereby increasing their borrowing capacity.
- The debt has a limited recourse. i.e. The bank can recover the debt from the super fund property itself, not the individual or other fund assets, which means the banks take on all the risk not you
- You pay no capital gains tax, or income tax, on rental income generated after the age of 60.
At MAS Tax Accountants, we can help you set up your SMSF and because we are also experienced Property Advisors, we can help you with your first, or next, property investment; including advising and assisting with buying a property with your SMSF. And, while many Accountants struggle with some of the unique issues in the SMSF and Property Investment Industry; Margin Schemes, Capital Gains Tax, Real Estate Trust Accountants and Feasibility studies are all common areas for us and issues we deal with on a regular basis.
We also have extensive experience in building finance proposals for the banks and other lenders. The Financial Planning team within MAS Tax Accountants of our business also does a lot of work with SMSF’s, so we can also assist with developing an investment strategy that works for you and your DIY fund.
In addition to SMSF set up and maintenance, Financial, Business and Property Investment advice, at MAS Tax we offer a ‘come to you service’ that is not restricted to normal ‘business hours’. This means we will happily see you at a time and place that is convenient to you; be it your home or office, to help you make the most of your superannuation and retirement plans.
For an appointment, or a confidential discussion of your needs, please contact our please call 1300 627 829 or submit your question below;
