27 Mar Investing in property? Think about SMSF
Many people nowadays know that by using a self-managed superannuation fund, they may be able to buy an investment property through it. Options were very limited in the past but have been relaxed recently and it is now possible to use borrowed money to purchase an SMSF asset such as real property.
Yes, a SMSF can be set up to borrow money to buy a property.
For those who want more control over their super, for small-business owners, for the substantial tax benefits it can bring with it… They are a lot of positives doing it. You can use the property as business premises provided you pay a rent to the SMSF at market value, isn’t that a great option for a self-employed to build their retirement? The fund will pay lower tax on its rental incomes and could be eligible to a discount on any capital gain it makes upon sale.
How to get started?
A minimum of $200,000 is required in your existing super but some lenders could look at as low as $150,000. If that is your case, you might be eligible for an application. Banks will allow SMSFs to borrow up to 70% of the purchase price (or the valuation’s price, whichever is the lower). 80% is still possible but restrictions apply depending on the guarantor(s) and the property itself.
Do you want to know your borrowing capacity to buy a property through a SMSF? Contact me and I can arrange that for you. I can even refer you to a Financial Adviser who will guide you step by step over the process and get you ready for this investment, ensuring you the retirement you deserve.
Further information please contact me here