Gearing to Property Investment? Use Your SMSF!
Are you looking forward to a successful retirement plan? Or perhaps you are looking into buying an investment property that can provide you with a steady income for life but do not have the fund to do so? Well, you do not have to be glum over that matter.
Have you given much thought about the possibility of gearing your SMSF (Self Managed Superannuation Fund) into property investment? The truth is, the use of your super fund is now the smartest way to fund your property investment portfolio. However, before delving much deeper, you must first take note that an SMSF in itself is not an investment.
Rather it is an environment that provides you with an incentive to save for your own retirement. The big difference with this scheme is that you have the full control unto where you will invest your fund and plan your own strategy to financial freedom. Thus, SMSF is a long-term savings arrangement with the purpose to provide you a supplementary income for retirement and does not or should not replace the age pension.
Now going back to using your SMSF for your real property investment, you will be able to experience three major benefits and advantages. These include the following:
- Investment choice – an SMSF can be structured to any investment needs. You can use it to fund a wide range of investments such as shares, property, cash or other assets that suit your retirement goals. Additionally, investment gearing opportunities also exist.
- Control – perhaps the most attractive feature of using your SMSF is having maximum control over your investment. You have the flexibility to decide how to use your fund, where to invest it and how the fund should operate.
- Tax Concessions – compared to the traditional property investment, you will not be faced with the costly income taxes. Through your SMSF you can lower your rental income tax to 15% and if you are aged over 60 when the property is sold, you will not be obliged to pay the Capital Gains Tax.
The best thing about SMSF is that it can be used by anyone. It does not matter if you have a fat bank account or have a small amount of available spending each week. Whether you are a businessman or a regular mum or dad, SMSF can provide you the vehicle that generates a steady income for life.
Although more and more investors are converting to SMSFs over the past decades and use it to fund a super property, talk with a professional first. You need to have a clear understanding of your superannuation asset.
Call one of the most trusted property investment strategists today Josephine Garner, CEO of Super Investment Ideas.
Dial 07 3282 5027 for Brisbane / 08 7071 7222 for Adelaide or visit http://www.superinvestmentideas.com.au/
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