Self-managed super fund for property investment

Self-Managed Super Funds Explained

A self-managed super fund (SMSF) is a powerful investment tool because it gives you more say in your investment assets. Depending on your situation, your SMSF can allow you to:

  • create a deposit to build a new home
  • build a property portfolio that will set you up for a stress-free retirement.
 

Property investment inside superannuation is one of the most effective ways to achieve financial independence in retirement. Through our proven programs we’ll help you gain maximum benefits from your SMSF through strategic property investment, allowing you to choose a tax-free retirement at 60 years of age.

How an SMSF Works

An SMSF is different from an industry or retail super fund, in that it’s a private fund that you manage yourself for your own benefit – which means you get to choose how your money is invested.

You can start an SMSF with up to three other members who are family or friends. The members of the SMSF are generally the trustees, either as individuals, or as a corporate trustee. As trustees you are ultimately responsible for complying with the applicable laws and regulations, which is why it is essential to work with experts with proven experience.

What is a Self Managed Managed Super Fund (SMMSF)?

Many people are wary of the time and cost and complexity involved in setting up and running an SMSF and it is true that there is ongoing work involved. However, when you partner with the right team, they will take care of everything – from the admin and accounting, to the record keeping and reporting – even the investment advice. The set yearly fees of an SMSF can seem higher on the surface than the percentage-based fees charged by industry and retail funds, but as your super balance grows, the set fee per year will likely end up costing you less. 

Both our Home Builder Accelerator and Property Portfolio Accelerator program are what we like to call SMMSF (self-managed MANAGED super funds) where everything is done for you by experts behind the scenes. You have control over how you invest, with the benefit of expert advice available on tap, which allows you to gain the maximum benefits from your SMSF.

Why choose an SMSF?

The majority of retired Australians rely on the government pension as their main source of income, which will often restrict lifestyle options. Building a property portfolio inside your super can be a viable source of passive income, removing the need to solely depend on the government pension.

Some of the key benefits of property investment inside an SMSF include:

  • rental income is paid to the SMSF and used to maintain the asset
  • lower capital gains tax rate on disposal of the property
  • income producing benefits, resulting in rental income
  • great tax advantages, resulting in capital gains
  • bricks and mortar are a low risk and dependable investment.

Is an SMSF borrowing strategy right for you?

Borrowing to purchase property through super may not be a good fit for everyone.  But, if you have a minimum of $150,000 in super or are able to combine up to four family members or friends’ super to reach the minimum, an SMSF borrowing strategy is certainly an investment option to consider.

SMSF’s are the fastest growing sector in the superannuation industry, as more people realise the benefits of leveraging their super to purchase property. Our team includes licensed experts on both SMSFs and property investment. We form long-term partnerships with our clients, helping them take the first step to learn about the process, right through to purchasing multiple investment properties and enjoying an early retirement.

If you’d like to find out if the SMSF borrowing strategy is for you, get in touch to book a complimentary online strategy session with one of our senior strategists.

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Is an SMSF borrowing strategy right for you?

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