Your link to the diverse range of information that exists in the world of Property Investing
For all practical purposes, you can consider buying property through your self-managed super fund. But there are certain limitations that you must adhere to. You cannot invest in any and every type of property. You would be contained within the funds you have available and you must consider the pros & cons of using your self-managed super fund.
First, let us clear the air. You can consider buying property through your self-managed super fund. There is no law that restricts you from doing so. Many financial experts may advise you against it and they will have some reasons but that doesn’t imply you cannot do it. Second, you must weigh the advantages and disadvantages of buying property through your self-managed super fund and do so objectively. Be flexible and make an informed decision.
There are two amazing tax advantages of using your self-managed super fund for an investment property. The primary objective of any self-managed super fund is to secure assets and thus wealth for your retirement years. Your financial independence or empowerment when you cannot work as you do now is the ultimate objective and the laws of the land are helping you to achieve that.
To facilitate savings and to make life financially easier for seniors, the tax imposed on self-managed super funds is much lower than personal income taxes. Hence, when you have the fund or a trust owning an investment property, you would be paying a much lower tax than what you would have to pay if you own the property yourself, in your name. The same applies to anyone you have in your family whose name you may wish to use for ownership. If you wish to get a considerable tax break, then using your self-managed super fund is a great choice.
The second tax advantage of using your self-managed super fund is the fact that your asset would not be taxable post retirement. Hence, if you wish to liquidate an investment property after you retire then you would not have to pay any hefty tax.
In addition to those two tax advantages, you would be able to protect your fund and trust despite having troubles with the loan or any disputes pertaining to the investment property. When an investment property is owned by a self-managed super fund or trust, the impending payments or any liens, taxes or any such financial commitments cannot be naturally levied on the fund or the trust.
The Queensland first home buyers grant is available for first home buyers who are buying or building a brand new home as their first home.Learn More
What are the Pitfalls when chasing lower interest rates, and how speaking with financial consultant before changing providers can help you avoid the significant...Learn More
Finance can be offered in many forms: personal, commercial or business. When planning finances, the individual can consider from a range of suitable financial p...Learn More