Self Managed Super Funds (SMSF) – The Easy Way To Invest In Property

Has your superannuation fund taken a hit over the past few years?

The share market has taken a huge hit recently and with the vast majority of superannuation funds investing primarily in shares the consequences have been extremely detrimental to many Australians’ super funds.

While there has been a lot of talk about how badly the economy has been performing, the fact is that the property market remains strong with prices still doubling every 10 years.

Now is the time to take back control of your superannuation to ensure your financial future and survival!

What Can You Do?

Since 2007 there has been a major increase in the number of everyday people who have taken the positive financial step by setting up their own Self Managed Super Fund (SMSF).

By setting up your own SMSF, you will be in a position to diversify your superannuation investing strategy from just shares to also include property - an ideal long-term investment!

Advantages

One of the advantages of a SMSF is that you can invest directly in residential property through your super.

Owning a residential investment property within your SMSF can be significantly more tax effective than investing in a property in your personal name.

Tax advantages of investing with your SMSF

Firstly, the maximum rate of tax your SMSF will pay on rental income is 15%. And if your SMSF is in the pension phase, this rate drops to 0%. This compares favourably with personally held property where rental income is taxed at your marginal tax rate, which in some cases can be as high as 46.5% (including Medicare levy).

Another advantage is that if your SMSF holds the property for more than 12 months, any capital gain made on the sale of the investment property will be taxed at a maximum rate of 10%, or again, 0% if the SMSF is in pension phase.

Gearing into property through your SMSF

Due to the generally high price of purchasing a residential property that has the potential to provide good long term returns and capital growth, it may be appropriate to borrow to purchase a property within your SMSF.

Borrowing to invest in property can help your SMSF maintain an appropriate level of diversification within your fund.

It Sounds Complicated

Setting up a SMSF is a complicated process; however with Hawkscrest Property and our licensed SMSF expert, we do all of the hard work for you via our 3 step process:

Step 1: Meet with our licensed and qualified SMSF accredited Financial Planner.

Step 2: Set up your SMSF & trust account structures.

Step 3: Choose the property you want to purchase.

The Hawkscrest Difference

When dealing with Hawkscrest Property and our SMSF experts, you are working with companies with over 20 years experience in the property development and superannuation market place. In addition to this you will be:

• Dealing with LICENSED & QUALIFIED SMSF Financial Planners.
• Able to access loans at rates below the current bank SMSF rates.
• Dealing with one company from finance through to the construction and renting of your investment property.

Why Wait?

Why wait? Take the first step by calling Hawkscrest Property on 1300 429 539 to schedule a time for your free one on one consultation or filling out our online qualification form by clicking here.