Having the ability to choose what assets you invest in, including direct residential and commercial property, is something you don’t have when investing via a traditional superfund. Therefore setting up a Self-Managed Super Fund (SMSF) can be a very attractive proposition for many. Granting greater flexibility to choose what you invest in for the long term. Direct property is a very popular investment for SMSF’s. In fact, 15% of assets held in SMSF’s are direct property (5% residential and 10% commercial).
What are the advantages of buying property through an SMSF?
Investing in direct property can be a good way of diversifying your holdings and grow your wealth. Through retail/industry superannuation funds you are generally limited to the companies and products they choose to invest in. Where investing through a SMSF you have greater control over and more options in your investment choices.
Given the significant tax concessions available when investing through superannuation, it is an attractive option through which to invest. Superannuation is governed by its own set of rules. It is important that you seek advice before making any significant decisions.
How do I go about buying property through an SMSF?
Entourage Wealth can help you here. You’ll need to have your SMSF set up, along with the formulation of your investment strategy, identifying what assets to invest in.
Whether you buy through your SMSF or not, it’s always crucial that you are very careful in what you choose to invest in. Do your research on any property or product you are being sold.It may be a good option to obtain advice as to an appropriate property for your investment strategy from a licensed real estate agent or licensed buyer’s advocate.
For more information see the Australian Taxation Office website on SMSF rules.