For most of us, our superannuation represents a significant proportion if not all of our savings for retirement. For this reason, it pays to take an interest!<\/p>\n
With recent changes to superannuation, investing in superannuation has become more attractive. More and more people are taking active steps in managing their superannuation.<\/p>\n
Self Managed Superannuation is one of the fastest growing retirement savings vehicles in Australia. There are over 400,000 SMSF\u2019s in the market at the moment and the asset value of these is likely to hit $1 trillion by 2015.<\/p>\n
\u00a0One of the key benefits of an SMSF is the ability for your superannuation to purchase investment properties<\/strong>.\u00a0 This gives significant tax and capital gains tax concessions as well as great leverage as the major banks are now proving lending of up to 70% of the purchase price of the property. Imagine owning an investment property for 10 years and not having any capital gains tax to pay on it if you sold it when you retired\u2026.<\/strong><\/p>\n Clearly property investing via a self-managed super fund is the smartest, most tax-effective way you can significantly increase your super returns and buy investment properties.<\/p>\n If you have a combined family super value $150,000 plus and want to turbo charge your retirement savings, then you\u2019d be crazy not to consider the option of borrowing to buy property in a self managed super fund.<\/p>\n How can I use my existing Super for investment? Where to start?<\/strong><\/p>\n If you are interested in using your superannuation fund to buy a long-term residential investment property, you may be unsure of where to start. Since 2007, Australians have been allowed to borrow money using their superannuation to purchase residential property via self-managed super funds (SMSFs).<\/p>\n Here are reasons why you should buy property in a self managed super fund:<\/p>\n How do I purchase a residential investment property via my SMSF?<\/strong><\/p>\n <\/strong>Self Managed Super Funds can borrow to purchase any kind of property including residential, commercial, retail and holiday units. While SMSF trustees were initially cautious, SMSF loan arrangers are increasingly busy as lawyers, accountants and planners have begun recommending this new investment option.<\/p>\n Buyers agent PK Property says it\u2019s the biggest thing to happen to the property investment sector since the introduction of negative gearing. \u201cWith rising uncertainty in the Australian and global financial markets, many people want to diversify their risk through property investment,\u201d says PK Property\u2019s Peter Kelaher.<\/p>\n \u201cThe old rules meant you had to buy property outright in your fund, whereas now you can borrow anywhere from 60% to 75% of the value of the property you are looking to buy.\u201d<\/p>\n Here\u2019s how it works…<\/strong><\/p>\n Let\u2019s 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.<\/p>\n 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.<\/p>\n 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.<\/p>\n That\u2019s a $24,500 or 162.5% difference in return.<\/p>\n Your loan repayments will be repaid by the tenant in rent, plus your personal, employer or tax deductible super contributions.<\/p>\n There are numerous tax advantages in using your SMSF to purchase property:<\/p>\n Other beneficial features of the SMSF loan structure include:<\/p>\n Borrowing to invest through a self-managed super fund (SMSF) can be a simple and effective strategy to leverage your existing superannuation nest egg for greater asset growth. However, as the trustee of a SMSF, you MUST be aware of the hidden traps in getting the structure & lending plan right, or else suffer the consequences.<\/p>\n Malyshka Pty Ltd ask you to remember this:<\/p>\n Malyshka\u2019s SMSF\u2019s structured approach At Malyshka Pty Ltd, we are committed to helping you create a successful long-term self-managed super property investment. We carefully researches the best locations for rental property to secure the future capital growth of your investment.<\/p>\n Our developments have been heavily researched and we compile an in-depth analysis of locations, surrounding infrastructure and a macro property market overview.<\/p>\n This is used to assist with the research analysis of your self-managed super property investment, ensuring the property you choose is a great fit for you.<\/p>\n We consistently monitor the markets and use a strict set of criteria to evaluate all potential developments – making sure your self-managed super property investment yields the highest return possible.<\/p>\n We are able to recommend an expert in Self Managed Super Funds for you to discuss how to set your own up and start building financial success. You can speak directly with our Managing Director, Grant Muddle, to discuss your options in more detail. CONTACT\u00a0<\/a><\/p>\n Watch a quick presentation that shows how SMSF and property development can work together to triple your superannuation – CLICK HERE<\/a><\/p>\n LINKS TO FURTHER READING…<\/strong><\/p>\n http:\/\/www.smh.com.au\/business\/property\/real-estate-more-attractive-to-smsfs-20111030-1mqap.html<\/a><\/p>\n http:\/\/www.thechronicle.com.au\/story\/2011\/11\/22\/surat-basin-need-16500-workers\/<\/a><\/p>\n\n
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\n<\/strong><\/p>\nMORE…<\/strong><\/h4>\n