If you have invested your money in a self-managed super fund, the past few months might have been very difficult and stressful for you. The stock prices are fluctuating. That’s why you have to watch the prices of the property going up and high. You might want to invest something in property in these times. So buying property through self-managed super fund will be a good idea for you.
What kind of property can you buy?
With the help of your super fund, you can borrow funds and make a property investment strategy Australia. You can also purchase property with this fund, such as commercial, residential, rural, retail, and holiday apartments. But you have to remember that these super residential funds are only for an investment property, so you cannot move in.
How does it work?
There is a complete procedure to file for the self-managed super fund for property investment. But the best way to do it is to leave all the paperwork to your adviser, and he will handle it perfectly. Here are a few steps involved in this process:
- With the super fund, you get a lawyer that will help you in establishing the property trust outside of your fund.
- When you find a property, you have to pay the deposit amount, and the rest will be paid by the lender from your self-managed super fund.
- The trustee of the property purchases the property and then becomes the legal owner of the premises.
- The property trustee can also grant the mortgage to the real property over to the lender.
- The rent of the property will be paid from the self-managed super fund.
- You can also pay the loan with your self-managed super fund.
- Your self-managed super fund will be the beneficiary of the property.
Benefits of buying property through self-managed super fund:
The benefits of buying property through self-managed super fund are different for every person. Some of the major benefits are as follows.
- The borrower has the ability to leverage the asset.
- The person can save money on taxes and get other benefits as well.
- The borrower has the flexibility and diversity to invest from the shares and super managed fund.
- The borrower will also get the 10% capital gain if kept the property to itself for more than 12 months.
- The tax which is generated from the rental property will not be considered or counted as a taxed contribution. Visit our website for more information