Self Managed Super Funds and Investment Property

More people want to take control of their own Super destiny and wherever they turn, they are reading about “Leveraging and Investing in a Property within a SMSF.”

Compared to other asset classes which generally cannot be leveraged, it’s not hard to see why many investors are now ‘investigating and talking to a financial planner or you about buying property in their Super Fund.’  And we have not even mentioned the incredible Tax Advantages …

Over 2 years ago we predicted that Self Managed Superannuation Funds (SMSF’s) would become a big driver of the Australian property market.

Since then, other commentators and the finance industry as a whole have woken up to the trend, and have begun to realise the massive influence SMSF’s will have in the property market over the coming years.

Property investing under Self Managed Super Funds has entered the mainstream. In the last 12 months it seems like everywhere you look there are ads promoting property investment through SMSF’s – even on TV!

“Why invest in Property in a SMSF and what is so appealing to put a property into one’s Super?“

Leverage: the ability to BORROW money to get the bank and the tenant to help pay off a large slice of Retirement Savings + Tax Benefits !

SMSF lending is ‘limited recourse’… In other words, a borrower’s ability to qualify for a loan under an SMSF has very little to do with what they personally can (or can’t) borrow outside the SMSF. It means that even if an investor is personally maxed out on their borrowings outside their SMSF, they may still be able to borrow money for investing within their SMSF.

Most people still don’t realise just how big SMSF’s are becoming with more and more adverts and thus enquiry coming to the fore, values of property could rise according to demand!

Over the last 5 years, the rate of growth in SMSF’s has massively outpaced growth in managed funds. There are now close to half a million registered SMSF’s in Australia
SMSF owned Assets represent almost a third of all money in superannuation within Australia. Property is beginning to make up a large proportion of assets in a SMSF for obvious reasons! The property market is once again on the rise, population in Australia continues to grow, rental yields continue to increase … why wouldn’t you own a safe portfolio in bricks and mortar being mostly paid for by your tenant and the tax man with help from your bank!

Around $15.5 billion of SMSF assets are already invested in residential property, making up around only 3.5% of the estimated $439 billion in SMSF’s – the potential for the Property Market is Immense.

The opportunity to own a Positively Geared Investment Property in one’s SMSF is here, meaning after your initial deposit, whether you continue to contribute towards your SMSF or not, the income is higher than the outgoings. Another reason to invest in bricks and mortar.

 Are you aware that potentially it is not all coming up roses investing through other channels and you should be talking with property professionals who have your interest at heart. Not all property makes for a prudent investment!

 This is where we come in. By now you will have an understanding that we always put your clients first and that we have access to property Australia Wide; giving you choice and enough supporting information based on our own due diligence PLUS encourage you to undertake the same amount of their own due diligence prior to making an Informed Decision.

 Investment Property | SMSF | Leverage using the banks money and your tenants rent to contribute towards your retirement planning goals