You can use your SMSF to borrow to invest in assets including property. Where before if you wanted to buy property, your super fund had to purchase it outright; now you can use it to borrow from a bank or lender for up to 70% of the amount, depending on the type of property your purchase. If you have a Self-Managed Super Fund (SMSF) or you’re considering getting one,
using super to buy property
is an excellent way to grow your assets. You can use your super as leverage to purchase residential or commercial properties with different rules applying to each. The loan amount does not fund construction or development, but rent goes into your SMSF as well as mortgage repayments coming out. So you have no out-of-pocket expenses; your super fund invests in and pays for the costs of the property.This serves as a long-term investment, and its advantage is that using super to buy property helps you determine your own financial future and establish a healthy retirement. An investment property purchased within your super only incurs 15% tax, where property purchased outside of super incurs a tax penalty of as much as 46.5%. Not only this, but if you also sell your investment property once reaching pension phase, you incur no Capital Gains Tax (CGT). All your other assets are safe and protected, as your mortgage lender only has legal recourse on the property with which they’re assisting. Using super to buy property is a smart, long-term investment that has the potential to give you early retirement. Property gears better than other assets; it contains more weight and banks are more likely to lend you more money to grow this substantial asset. Your super covers initial shortfall and the property typically becomes cash flow positive and self-funding after a number of years. Using super to buy property gives you more than sufficient means to experience a healthy and early retirement. It gives you the freedom to control your own super through a Self-Managed Super Fund and all assets inside your SMSF are protected from creditors and insolvency. You can hold property in your retirement with no out-of-pocket expenses and substantially grow your assets with your SMSF.
We understand the intricacies involved in investing for your future. We can help you establish a base from which you can grow your assets and use property to have the retirement you never thought was possible. We can show you the best possible way to leverage your SMSF for a sustainable asset that will give you the wealth and growth you’ve been searching for.