Did you know you can purchase a residential or commercial property in a self managed super fund?
Some people who have chosen to invest funds in their self managed super funds have been enjoying the freedom of choosing how those funds are invested. With the rise and popularity of the self managed superfund, managing your retirement funds is now fairly common as people shun large corporate public funds and opt to control their nest egg themselves.
There are significant rules and regulations in place to govern the management of your superannuation in order to protect your retirement savings. Until recently for instance it was not possible for a superfund to borrow funds for investment purposes. This ban has now been lifted and superfunds, including self managed superfunds, are able to borrow money to directly purchase real estate or shares in order to further the investment portfolio of the fund.
There are restrictions in place in structuring these transactions for example; specific entities need to be established in order to facilitate the borrowing and ownership of the assets. Also there are complex issues involved in relation to stamp duty and capital gain tax and SMSF loan products available. It is crucial to speak to expert legal, accounting and financial advisers as well as to mortgage brokers experienced if you are considering or have decided borrowing funds in your SMSF to purchase a property.
The benefits of using your superannuation funds to invest can be personally and financially rewarding. Wouldn’t you like to be paying off an investment property with the 9.5% super payments your employer makes on your behalf? Please contact us or give us a call on 0420 354 418 to talk over your situation and to see if you could be enjoying the benefits of investing with a self managed superfund loan.