What You Must Know Before Investing In Property With Your SMSF

An interesting article written by Bob Korver for Smart Property Investment lists the key elements investors must know before buying a property using their self-managed super fund.

The article states that one of the best things about buying property through your (SMSF) is the low tax rate, currently at 15 per cent. But it’s not just the low tax, there are still two more important factors that you should take note of before investing your SMSF.

Before buying property through your SMSF, it’s important to note that you won’t be able to live in the property because the sole purpose of buying a property is to support your SMSF investment strategy and build your wealth for retirement. You should have at least $200,000 in existing super savings before investing your SMSF in a property.

Additionally, SMSF property loans are more complicated than a normal home loan as most lenders don’t want to lend more than 80 per cent of the property’s value.

It’s always a good idea to consult a financial advisor before you utilise your SMSF to buy a property investment.

Read the full article here.