Investing with SMSF

  • Can I really buy a property using my Super?

The answer is yes! It is possible to purchase investment property using your super. We have properties suitable for this particular purpose. We request our clients to seek advice from a qualified professional (financial consultant or accountant) regarding their personal situation before opting for this step.

 

  • Benefits of this strategy:
  • SMSF assets are secure as the lender does not have recourse to your SMSF assets.
  • Even if the property have not been paid off, your SMSF receives all income and capital growth.
  • Your SMSF can use income generated from the property to pay off the mortgage.
  • If you decide not to continue SMSF, you are free to quit anytime. The funds will receive the residual value after the loan is repaid.
  • Loan interest can be claimed as a tax deduction by the SMSF and it will potentially reduce the SMSF’s tax liability.
  • SMSF is able to acquire property which is worth more than its available funds through multiple instalments over the long term.
  • Things that have to be considered:
  • Your SMSF must allow borrowing under instalment arrangement.
  • Your instalment must meet certain criteria to ensure that the SMSF remains complying.
  • Risk, return, diversification and loan interest rates have to be taken into consideration while taking this step.
  • The investment must be consistent with SMSF’s investment strategy.
  • You must act in best interest of SMSF beneficiaries as a trustee.
  • It is highly recommended to consult qualified professional (finance consultant or accountant).