Benefits of Self Managed Super Funds

Many people have profited from setting up their SMSF and that profit has increased since the rules have modified to permit Self Administered Super Fund borrowing. Borrowing to allow SMSF property investment is now legitimate, but there are still certain regulations and rules that should be accompanied to guarantee ensure your SMSF is compliant.

Basically a Self Managed Superannuation property must be an investment property; you could not live in it yourself. You need to have a legal counselor set up a property trust outside of the super fund, then after that you pay a deposit on the investment property and obtain the rest through your Self Managed Superannuation.


Any wages from the backing property should be paid into the SMSF. The self managed super fund should becomes the beneficiary of the property and pay off the loan. Property Investing's advantages are that you could leverage the asset of the SMSF. And then obviously there many tax benefits when utilizing a SMSF for investment purposes. Having property in your Self Managed Super Fund is a good investment strategy and help you to diversify your portfolio.


Moreover, the interest is tax free, capital increases duty is 10% if the property is kept for over 12 months, and this has the potential of being nil if the property is kept until the Self Managed Super Superannuation has entered the pension stage. And rent from the property is not considered a taxed contribution. At the same time before you rush out and buy a rental property through your SMSF, verify that your trust deed does actually permit it or else make the necessary procurement. A financial adviser might as well have the ability to help you. But remember that you still should have the capacity to service the loan yourself.