Information about using the self-managed super fund to buy property

Australia is on number one in the trend of using self-managed super fund to buy property. Many investors are investing in Australian residential real estate market without thinking and doing homework. Before doing this, there come some essential questions that you must ask yourself first.

Ask yourself if the property you are going to invest in meets your objectives?

•         Do you want capital growth or income?
•         Does your fund afford to gear into a property negatively?
•         Does the strategy of fund investment allow you to invest in property?
•         And does your fund purchase fit the sole purpose test?

Before making a decision, these are some necessary questions to ask you. But these are not the limitation as there are many other things to consider. Like you are not allowed to buy a property except the circumstances are rare. Plus, you are not allowed to use the property yourself unless the property is of real estate, rented by your business.

From 2007, the rules, regulations, restrictions, and limitations on how you can use your SMSF have changed. Since 2007 rules and regulations, you are allowed to control your super funds through SMSF to borrow funds, make an investment, and buying a property with super rather than buying outright. Also, you are allowed to hold property in the assets of retirement with zero personal expenses.

Buying a property through SMSF make you enable to become actively engaged with your funds and super money. It allows you to establish your retirement with a tangible and reliable investment solution. Additionally, buying a property through SMSF, you are matching the levels of other proactive Australians who are securing their future safely and wisely. And you can control your SMSF to borrow to invest in property, and with residential properties that gain up to 70% loan-to-value-ratio.

As the share market fluctuates every day, using SMSF for buying property Instagram Followers gives you a welcoming opportunity to make a solid investment that can generate long-term benefits and wealth. And if your SMSF held for more than 12 months, it pays you only 10% capital gain tax, whereas, if you sell the property in your pension phase, there is no capital gain tax. The home loan of SMSF offers several advantages, such as your lender will get no access to any other assets within your SMSF.

Using self-managed super fund to buy property helps you to boost your retirement assets, secure your investments, and create a sustainable financial future.