SMSF property investment – self-managed super funds offer everyday investors the unparalleled opportunity to build a safe financial future that many previously thought impossible. And even better than this is an SMSF in direct property investment which gives you certainty, with great returns. History shows that property is a more stable asset and much less volatile than the share market, yet many people have their superannuation money entirely in shares.
Now with SMSFs having the ability to borrow, it’s possible to invest in quality residential property and gain retirement fund stability and solid returns. It is now possible to buy median priced, quality 4 bedroom houses even though your super might only have a third of that value.
An SMSF via a Direct Property fund enables you to use your existing superfund balance to finance land and costs. You can also team up with members (friends and family) to combine your super to fund the initial contribution or increase your borrowing capacity. You can pay off the property using your employer’s 9.25% super contributions (increase to 12% by 2019) plus the rent received from the property as well as voluntary contributions. Furthermore, if structured correctly the rental income can be tax-free and potentially pay no Capital Gains Tax, when/if you sell the house, rather than paying CGT and up to 46.5% tax if sold in your personal name.
So ‘how do you establish such a fund’ you ask? With Safe Super’s diligent guidance, you choose the property you wish to invest in via the SMSF. Residential property must be purchased from a vendor that is not from anyone related to the trustees/directors of the company, or themselves. Safe Super Homes obtains a loan approval and then the SMSF manages the asset, usually and advisably with professional assistance, all under the expert guidance of Safe Super Homes.
History has shown us since 1994 that the safest investment you can make is in our favourite growth corridor, here in South East Melbourne. It is the abundance of infrastructure that makes it so safe, and with consistent, unmatchable growth.
If you are tired of paying up to 46.5% of your weekly earnings in tax, then come and talk to Victor and Gary, who will show you how to reduce your weekly tax by more than 50% (conditions apply).
Thanks to the honest, experienced and professional team here at Safe Super Homes, you will be amazed at the results you can achieve in your retirement plan, and/or as a kickstart for what you can leave to your next of kin.
Get your superannuation questions answered by the experts. Send any query big or small to firstname.lastname@example.org
Victor Manusov, Director of Solutions at Safe Super Homes
Kelvin Gough, Managing Director at Safe Super Homes
Gary Kosover, Accountant at Safe Super Homes
This article contains general advice only. Before acting on it consult qualified professionals. If you require specific property investment advice call Gary Kosover, Chartered Accountant 03 9702 2595 at Safe Super Homes, 26 Moondarra Drive, Berwick.