If you thought that super invested in shares was your only option for retirement, think again. You can use your Self-Managed Super Fund to your advantage and secure your financial future
buying property with super
. Bricks and mortar are the way of the future; you can use part of your superannuation to secure a property and set yourself up for a retirement beyond what you’ve imagined. If you don’t have a SMSF, don’t worry. You can establish a Self-Managed Super Fund through a simple process and begin planning an early retirement.With the share market in its volatile state, property presents a stable opportunity to establish long-term financial security. To banks and lenders, property is the best asset to have in your arsenal; banks will lend you more money to hold residential property than any other asset, giving you more leverage and an asset that is constantly growing and producing wealth. You have the power to control your funds and therefore your financial future. Property simply gears better! If you think purchasing a property outside of super is a safer bet, you could be making a huge mistake. A property purchased outside of super incurs a tax percentage of up to 46.5% where a property purchased within super incurs only 15%. Buying property with super can actually guarantee you more security. Your chosen lender has no legal recourse for any other assets other than the property they’re assisting you with. All other investments and assets inside your SMSF are secure. You also pay no out-of-pocket expenses for holding property and any shortfall is paid for by your SMSF. You’re eligible to buy either commercial or residential property with super (with particular guidelines for each) and although the loan cannot fund development or construction, your property serves as a moneymaking entity for you until you sell. Best of all, selling the property in the pension phase incurs no Capital Gains Tax (CGT).
You can utilise your DIY super fund to invest in property and reward yourself with a stable, comfortable retirement. Don’t risk investing in an unpredictable share market; secure your future through buying property with super. Buying property with super has the potential to give you hundreds of thousands of dollars you would otherwise miss out on. Actively engaging with your super, knowing how it performs, and what benefits it can gain allow you to take control of your financial future.