Buying residential property through a self-managed super fund

When it comes to your superannuation, most funds are invested in shares, fixed interest, and cash. But there’s another asset that has the potential to extensively outperform them all in the long run – residential property. Though not for everyone, quality residential property purchased using the right strategy can deliver a sizable payoff.

Why choose us

Location, Location, Location

When it comes to your superannuation, most funds are invested in shares, fixed interest, and cash. But there’s another asset that has the potential to extensively outperform them all in the long run – residential property. Though not for everyone, quality residential property purchased using the right strategy can deliver a sizable payoff.

Making SMSF set-up easy

Setting up a self-managed super fund can be complicated and time consuming. At RNO Financial, we simplify that process, making sure your fund is created with minimal involvement, hassle, and stress on your part.

Using an SMSF, you won’t need to buy property outright. All you’ll need is a 20 percent deposit plus costs (e.g. stamp duty, legal fees, etc.). Your SMSF can borrow the rest from the bank, and you simply invest the remainder of those funds in alternative assets.

When you borrow to buy property through your super, your fund will have significantly more capital working for you. A larger capital value compounding over time could mean tremendous growth and a higher super balance in the future.

Your super contributions, tax benefits, and rental income should be sufficient enough to pay all loan repayments and ongoing property expenses, such as body corporate fees, rates, and landlord’s insurance.

Investing in property over time in a tax-advantaged SMSF can eliminate contributions, income and capital gains taxes each year – saving you tens or even hundreds of thousands in taxes. This can have a tremendous effect on your super wealth.

A SMSF is the only structure that lets you pay off your SMSF loan using pre-tax dollars. This translates into faster loan pay-off and potential savings of thousands of dollars in interest each year.

 

  • There’s absolutely no limit to the amount of properties you could purchase through your SMSF. With expert guidance, you could build a highly profitable multi-property investment portfolio that delivers tax-free income and capital for your retirement.