Self Managed Super Funds Borrowing

Self Managed Super Funds Borrowing to Make the Property Investments that Will Fuel Your Retirement

Purchasing property to rent is one way to accumulate money for your retirement.  With the monthly income it produces, plus the capital gains most property achieves each year, it will quickly build into a nice nest egg that could allow you to retire comfortably.  With Self Managed Super Funds borrowing, you can use the tax laws to your advantage in growing your retirement wealth.

If you are part of a Self Managed Super Fund (SMSF) trust, your trust can borrow money to purchase investment property.  One of the advantages in doing this is that loan repayments can be made with pre-tax contributions.  Your SMSF can also take advantage of other tax savings if you are selling property owned by the fund.  The money you receive from the sale of the property will only be taxed at 10%, far less than if you sold property outside of the trust.  Any incentives offered to property investors can also be taken advantage of by SMSF trusts when they invest in a property.  For instance, the National Rental Affordability Scheme incentive is another good way to add money to the SMSF.

For 10 years, the NRAS can add approximately $9,900 per year, per property, to your SMSF account.  There are also grants that you may find in certain areas of town that will pay incentives to investors for creating rental housing there.  In many popular areas, rental housing is hard to find and so the local and federal governments offer incentives for those willing to invest in those areas.  To find out how your SMSF can take advantage of tax breaks and incentives to invest in property, contact Zenith Property Consulting and speak with one of our property investment advisors.

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