People can borrow using their super fund as leverage (current rates around 60-70%). This means, if you have $200,000 in superannuation, you can use those funds to leverage approximately a $600,000 purchase.
Many people don’t realise the potential to use their own superannuation to buy a property using their own Self-Managed Super Fund. There are many benefits to doing this, here’s just a few:
A maximum 10% capital gains tax (CGT) on the sale of the property if held for at least 12 months and potentially nil if sold in pension phase.
Maximum of 15% tax on rental income.
All rental income received assists in paying off the mortgage loan.
Any expenses such as interest, council rates, insurance and maintenance may be claimed as tax deductions by the SMSF, which potentially reduces the tax liability of the SMSF
You do however, have to qualify to be able to do this. The property must:
This is a relatively painless process if it is overseen by the right person. There are many more steps to take with this borrowing arrangement in comparison to an investment property purchase outside of the super fund, but the benefits will be worthwhile if you have the right person to help guide you.
Call us today for an obligation-free chat on 1300 846 956 to find out more or Get Started Now.
Responsive, lightweight, fast, synchronized with CSS animations, fully customizable modal window plugin with declarative configuration and hash tracking.