How To Invest Your Self-Managed Super Funds In Property by Australian chapter of Property Investment Networking Society - Musely
  • $ 11% Cashback on all one-time purchases
    11% Cashback is available to all registered users and will be give in the form of Musely Coins.
    * Buy Together & Subscriptions orders are not eligible for Cashback
  • Free shipping over $25

    Free Shipping on All Orders Over $25.

    You may request a return within 30 days from the date the product is shipped.

    All returns may be tentative on brand approval.

How To Invest Your Self-Managed Super Funds In Property

posted in Various
  • By Australian chapter of Property Investment Networking Society

    Self-managed super funds (SMSFs) is one of the ways Australians can save for their retirement. The one major difference between SMSFs and other types of retirement funds is that SMSF members are also the trustees of the fund. In short, the members themselves actually run it for their own benefit, but must comply with specific super and tax laws. According to the Property Investing Australia Group, it is possible to purchase property with an SMSF, but the member must adhere to SMSF property rules.

  • Consider the Rules before Using Super to Buy Investment Property

    As mentioned earlier, there are smsf property investing rules that members must adhere to and should be considered to help them to determine whether or not a SMSF is the right thing for them. For example, if you were to use your super to purchase an investment property, it must not be lived in by a fund member or any other fund members’ related parties. Check out the Australian Taxation Office’s website on self-managed super funds to get a better understanding of the rules and regulations.

  • Understand All of the Costs First

    The costs involved are an important thing to consider when buying property through SMSF. In general, SMSF property sales tend to have a lot of fees and charges; consequently, the fees do add up and will reduce the balance of your super.

    Understand all of the costs involved before signing up including the following:

    • Upfront fees
    • Legal Fees
    • Consultations Fees
    • Stamp duty
    • Any Ongoing property management fees
    • Finance and/or Bank fees

    Having a sound investment strategy will ensure that you get off on the right track right from the start.

  • 3. A Note on Borrowing

    Borrowing is a possibility, but much like other aspects of SMSF property investing, there are rules. Borrowing can only be done under very strict circumstances called a “limited recourse borrowing arrangement”. With this strict borrowing option, there are risks involved.

    These risks can include:

    • Higher cost – SMSF property loans are usually more expensive.
    • Difficult to cancel – If your contract has not been properly set up, you may not be able to unwind this arrangement, which could cause potential losses to your SMSF.

  • When buying property through smsf you must always consider the risks involved.


See all comments

Related Tips

See other sign in/up options
Set up my password later
Login / sign up with Email
Forgot Password?
New to Musely
See other login options
Sign Up with Email
Already have an account? Login
Looks like you have an account already
Enter your password to proceed to checkout
Forgot Password?
Please re-enter your password
Forgot Password?
* This is for protection of your private information
Create a Password
For better protection, please provide a password for you account.
For privacy reasons, you must login every time you access this page.
Forgot Password?
< back
< back
Reset Password
Enter the email address associated with your account
< back