Property in Self-Managed Super Funds

Investing in property via a self-managed super fund is the smartest, most tax-effective way you can significantly increase your super returns and buy investment properties.

If you have a combined family super value $150,000 plus and want to turbo charge your retirement savings, then you’d be crazy not to consider the option of borrowing to buy property in a self managed super fund.

Here are reasons why you should buy property in a self managed super fund:

• You can take control away from fund managers and choose your own investments, such as commercial and residential properties anywhere in Australia
• Unlike all other super funds, self managed super funds have the ability to borrow to invest
• Instantly boost your super balance by over 150% without any contributions and take advantage of compound growth on a much larger super balance
• You can repay the debt significantly faster inside your super because of concessional tax advantages
• Wipe out any super income tax and compulsory contributions taxes being lost on each super contributions – i.e: employer, salary sacrifice and personal tax deductible contributions
• Pay no capital gains tax or income tax on rental income generated after the age of 60
• Investment loans taken out for borrowing in a self managed super fund are non-recourse, which means the banks take on all the risk not you

Here’s How It Works

Let’s say you had $200,000 in your family self managed super fund. You can use the money in your super as a deposit plus costs to buy a property and the bank will lend you the rest.

So if you wanted to buy a property worth $500,000, you could put in $175,000 which is equals 30% plus costs, and the bank will lend you $350,000 to complete the purchase.

This means that you super balance would have increased from $200,000 to $525,000. So in this scenario, if your fund made a 7% capital growth before you purchased your property, the increase in capital value on your $200,000 fund would be $14,000. Whereas, if you take that same 7% return on your self managed super fund that purchased a property, the increase on your capital value in your super would be about $36,750.

That’s a $24,500 or 162.5% difference in return.

Your loan repayments will be repaid by the tenant in rent, plus your personal, employer or tax deductible super contributions.

This demonstrates that by substantially increasing the value of your fund, it significantly increases the potential for return on your investment.

Take control of your super NOW and make a massive difference to your super balance when you retire.

With the help of Investment Property Masters, you can:

• Find the best properties to buy in your self-managed super fund
• Generate a constant stream of rental income and substantial capital growth
• Diversify your portfolio and provide a defense against market fluctuations
• Significantly reduce your income taxes on rental income and capital gains
• Deduct 100% of your real estate interest repayments and ongoing costs such as repairs, insurance, agents’ fees and depreciation against your fund’s taxable income
• Structure your self-managed super fund to ensure you can meet your interest obligations even if you stop making contributions to super
• Ensure you don’t make costly mistakes that can cost your fund hundreds of thousands of dollars in penalty taxes

There’s never been a better time to invest in property using a self-managed super fund.

Start today and grow your wealth faster than you ever thought possible.