Buying a property through a Self-Managed Superannuation Fund (SMSF) can offer several benefits for investors, including:

  1. Tax advantages: Rental income received by an SMSF property is taxed at a maximum rate of 15%, while capital gains are taxed at a maximum rate of 10% if the property is held for at least 12 months.
  2. Retirement savings: Investing in property through an SMSF can help grow retirement savings by providing a diversified investment portfolio that includes real estate.
  3. Control over investment decisions: With an SMSF, investors have greater control over investment decisions, including property selection and management, allowing for a more personalised investment strategy.
  4. Asset protection: Assets held in an SMSF are generally protected from bankruptcy and legal action, providing additional security for the investor’s retirement savings.
  5. Leverage: SMSFs can use borrowed funds to invest in property, allowing investors to increase their purchasing power and potentially generate higher returns.
  6. Potential for rental income and capital growth: A well-selected property can generate rental income and appreciate in value over time, providing potential for both rental income and capital growth.

Overall, buying a property through an SMSF can offer significant tax advantages, diversification of retirement savings, greater control over investment decisions, asset protection, and potential for rental income and capital growth. However, it is important to note that investing in property through an SMSF requires compliance with specific regulations and guidelines, and investors should seek professional financial advice before making any investment decisions.

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