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Discover how savvy property investors use their self-managed
super funds to purchase residential property and build lasting
Call us on 02 9211 6000 today or request a call back from a
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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 measurably 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.
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.
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.
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.
Investing in property over time in a tax-advantaged SMSF can eliminate contributions and income taxes each year – saving tens or even hundreds of thousands in capital gains tax. This can have a tremendous effect on your future wealth.
A SMSF is the only structure that lets you pay off your SMSF loan using pre-tax dollars. This translates into faster loan pay-off and potential savings of thousands of dollars in interest each year.
There’s absolutely no limit to the amount of properties you could purchase through your SMSF. With expert guidance, you could build a highly profitable multi-property investment portfolio that delivers tax-free income and capital for your retirement.