How To Use Superannuation To Buy Property
February 11th, 2012 | by admin |• Interested in taking control of your financial future?
• Want to get more out of your super?
• Don’t want to invest in a less stable area like shares?
• Worried you won’t have the retirement you want and deserve?
• Interested in using property to set yourself up?
• Find out how to use superannuation to buy property and give yourself a steadfast retirement asset!
With uncertainty mounting towards the share market and investing, it’s understandable that more people are searching for better ways to invest their super for a comfortable retirement. When you understand how to use superannuation to buy property, you can make a far more secure investment and ensure your financial future is mapped out and prosperous.
In the present economic climate, it’s perfectly reasonable for people to be wary about investing their superannuation money, particularly considering the recent slump in super fund performance – the worst since 2008. If you’d prefer a more hands-on approach to dealing with your super money, then an SMSF may well be the choice for you. An SMSF is an ideal fund choice for people who have the time, knowledge, and the resources to handle managing the fund and who want to use it to invest in options to maximise their retirement savings’ potential.
Using your Self-Managed Super Fund, you can buy property and set yourself up for retirement. In the case of residential property, you can use your SMSF for a deposit, ongoing expenses, and up-front costs, and borrow up to 70% from a trusted bank or lender. If you have other assets in your super, they are all protected and your lender only has legal recourse against the property in question. Your super fund pays for any shortfall, and you receive the benefits of no out-of-pocket expenses for holding the property.
If you think that owning property is your key to a happy retirement, understanding how to use superannuation to buy property will be even more advantageous for you. A property bought through your SMSF only incurs tax of 15% rather than the standard amount of up to 46.5%. Buying property within your super fund gives you an equitable asset, saves you out-of-pocket expenses, and rewards you with impressive tax concessions. And if you sell your property in pension phase, there is no Capital Gains Tax to pay. You are investing in a long-term plan that will give you not only a comfortable retirement, but also an early one.
Rather than risking your precious super in a volatile share market, make a sound investment and learn how to use superannuation to buy property. Actively engaging with your SMSF is the first step to taking control of your financial destiny, and setting up your SMSF can be accomplished through a step-by-step process. Take control of your financial future now and find out how to use superannuation to buy property.
If you’d like to know more about how to use superannuation to buy property, check out Super Alchemy. Super Alchemy devises strategic super investment plans and offers professional advice about how to use superannuation to buy property.