Investing in Property

Purchasing Investment Property via Self-Managed Super Funds

A property can earn you money in two ways: as an asset that increases in value over time, and through rental income. In deciding which property is right for you, you’ll need to consider your current situation and long-term goals.

Self-managed super funds (SMSFs) are now the fastest growing segment of the super industry[1]. But this doesn’t necessarily mean they’re the best choice for everyone.

As at March 2014, there were 528,701 SMSFs in Australia, with a total of $558,553 million worth of assets.[2]There are many compelling reasons why SMSFs are so popular — and equally persuasive reasons as to why they don’t suit everyone.

If you’re a keen, experienced investor, with at least $200,000 to invest — and the time and expertise to manage your own investments — an SMSF could be a good choice.

If you’re a business owner, there may be advantages for your business premises to be owned in your SMSF and then leased it back to the business.

But remember, running an SMSF is complicated, time consuming and requires considerable knowledge about investments. You’ll need to create and document your fund’s investment strategy, record your investments and transactions, and ensure that your fund is adequately diversified to help manage the risks of investing.

[1]ATO (2013) Running a Self Managed Super Fund

[2]ATO (2014) Self-Managed Superannuation Fund Statistical Report.

How we can help

If you’re thinking of utilising a Self-Managed Superannuation Fund, it’s important you seek advice. Contact us, our initial meeting is complimentary.

We would recommend you join the program. If you are serious about paying your house off early & creating wealth, these guys are the ones to be with.

The Dodds Family

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