What is an SMSF anyway?
An SMSF or Self-Managed Super Fund is nothing more than a self-directed investment portfolio which allows you to take back, control of your Superannuation.
SMSF’s are the fastest growing segment of the retirement funding industry in Australia, and with good reason.
Public Offer Super funds continue to perform badly. Giving many people cause for concern about the safety of their future retirement.
Industry Funds are creating their own sense of distrust with their constant claims about low fees and regular media reports on the poor management results by their owners, The unions.
After some changes were made to Superannuation law in 2007, Australians can now invest in the asset class we love the most. The asset class, that allows us to sleep easier at night. Direct residential property.
7 reasons to have a SMSF:
- Take back control of your superannuation;
- The SMSF’s structure can borrow to invest ;
- Invest in Direct Residential Property;
- 0% Tax in Retirement ;
- Better protection for your family’s assets ;
- Bypass contribution limits, and;
- Use Strategies that are unavailable to normal Super Funds.
- Requires careful planning to achieve the greatest benefits
- Money is tied up in the SMSF until you retire
- There needs to be cash-flow in the fund to service debt (if any)
- Taxation implications may differ for each type of investor
Why should you borrow in your SMSF to invest in Property?
- It can deliver up to 35% better after-tax returns over 20 years.
- Allows retention of personal cash flow for debt reduction and lifestyle costs.
- Increases ability to purchase additional properties.
- Allows multiple Tax Free properties.
What you CAN do
What you CANNOT do
Purchase residential property from an arm’s length vendor.
Have owner occupied residential property in your super fund.
Use the banks money to increase your superannuation funds earning potential, through a non re-course loan
Transfer residential property already owned by a related party into your SMSF.
Purchase the property you would like to retire to, lease it out now and pay as a lump sum pension to yourself when you retire.???
Have a tax free investment property with no Capital gains Tax (after age 60 years in most cases)
Redraw loan facilities in your super fund.
Buy a holiday house to stay in
How TheSuperGuy can help you
- We help make the move from your industry or retail fund to a SMSF;
- We ensure you have the right structure for your needs;
- We shorten the amount of time it takes to have your property deposit ready;
- We stay in touch to help you get ready for additional investments, and;
- We make the process simple.
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