Have you been thinking about using your superannuation to invest in property? It’s possible—through a Self Managed Super Fund (SMSF). For the right investor, this can be a powerful strategy to build long-term wealth. But before you dive in, there are some important things to consider.
How does it work?
An SMSF allows you to take control of your super and invest directly in property. If you’re buying residential property, it must be for investment purposes only. Commercial property, on the other hand, offers more flexibility. You can lease it to tenants or to your own business, potentially unlocking significant financial advantages.
What’s required?
SMSF loans typically require a deposit of between 10–30%, depending on the fund’s circumstances. Lenders also have strict conditions around loan structure and servicing, so getting it right from the outset is critical.
Why consider it?
Some of the potential benefits of this strategy include:
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Full control over your super investments
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Strategic diversification into direct property
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Concessional tax rates on rental income and capital gains
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Cost efficiency for larger super balances, as some costs are fixed rather than percentage-based
But here’s the catch…
SMSF lending is complex, and structuring it incorrectly can be costly. That’s why having the right professionals—your finance broker, accountant, and legal advisor—is essential.
If you’re exploring the idea of using your super to invest in property, let’s chat. We can help you assess if it’s the right move and ensure your SMSF is working for you, not against you.