The top 7 reasons to consider buying property with your smsf
- It’s a physical asset that you can see. You can drive past your Investment Property and actually see your Super working for you.
- Generally, you’ll need at least a 30% deposit plus purchase costs.
- You’re taxed at only 15% on income (versus up to 45% in your own name) and only pay 10% Capital Gains Tax. When you’are over 60, you pay NO tax on income and NO Capital Gains Tax.
- You have full control; you decide what your Super will be invested in. This means you can have some in property, some in shares etc., it’s up to you.
- Your employer helps pay for the property. By Law, employers put 9% of your salary into Super. you may want to have those contributions go to your SMSF to pay off the property!
- You can combine Super balances. A SMSF allows you to pool the balance of your fund with your family members. SMSF’s can have up to 4 family members, which means that between a few of you, you may have enough for a deposit on a property.
- It’s not as hard as some would have you think. Whilst it’s true that SMSF’s have much compliance to be aware of, the fact is that your accountant or planner will do the majority of this for you.