Location, Location, Location
When it comes to your superannuation, most funds are invested in shares, fixed interest, and cash. But there’s another asset that has the potential to extensively outperform them all in the long run – residential property.
Though not for everyone, quality residential property purchased using the right
strategy can deliver a sizable payoff.
Why should you consider residential property acquisition through your super?
1You only need a fraction of the purchase price.
Using an SMSF, you won’t need to buy property outright. All you’ll need is a 20 percent deposit plus costs (e.g. stamp duty, legal fees, etc.). Your SMSF can borrow the rest from the bank, and you simply invest the remainder of those funds in alternative assets.
2You can achieve exponential capital growth.
When you borrow to buy property through your super, your fund will have significantly more capital working for you. A larger capital value compounding over time could mean tremendous growth and a higher super balance in the future.
3 All expenses are paid by your super fund.
Your super contributions, tax benefits, and rental income should be sufficient enough to pay all loan repayments and ongoing property expenses, such as body corporate fees, rates, and landlord’s insurance.
4 You could reap significant tax advantages.
Investing in property over time in a tax-advantaged SMSF can eliminate contributions, income and capital gains taxes each year – saving you tens or even hundreds of thousands in taxes. This can have a tremendous effect on your super wealth.
5 You can reduce debts faster using pre-tax dollars.
6 You can build a solid portfolio of property.
Learn more about buying property through a self-managed super fund today.
- Are you doing everything you can to maximise your super?
- Could you be missing out on significant tax-saving and wealth building opportunities?
- Are you familiar with all of your super options?
Contact us today to see how Tax Effective can help you better manage your super.
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