With a DIY super fund, you can actually leverage your super earnings to borrow to invest in real estate. Your Self-Managed Super Fund or SMSF pays for the deposit, up-front costs, and ongoing costs of the property so you don’t pay for anything out of your own pocket. You can’t live in the property, however in certain cases you can rent the property and rent payments feed directly into your SMSF. Now, why would I want you to leverage your super: your ticket to retirement? Simple. If you’re one of the many smart Australians who knows that there is stability in real estate, you’ll be interested to know that it costs far less and is far more beneficial to purchase property inside your Self-Managed Super Fund. Wouldn’t you rather pay tax of 15% than up to 46.5%?
Using
SMSF borrowing to buy property
is the wiser decision. Prior to retirement, capital gains and rent your property earns through your SMSF are taxed at only 15% and dropped to 10% if the property is held for more than 12 months. Better still, if you sell your property after reaching pension phase or hold onto it after retirement, you pay no Capital Gains Tax at all. Investing in anything presents risks, but using SMSF borrowing to buy property provides you with a tangible asset made of bricks and mortar – an investment with higher earning potential and no out-of-pocket expenses.Using SMSF borrowing to buy property is a smarter choice if you’re already considering buying property as a long-term asset. Property purchased inside your SMSF not only gives you impressive tax concessions, but also gives you an asset that is consistently growing. If you want to maximise your retirement potential, we can help. We offer expert, personalised guidance for investing your super into property safely so you can reap the benefits of a richer, earlier retirement.