SMSF and Property
Since time immemorial it has been argued as
to whether the benefits of gearing property
investments outweighed the tax concessional
environment offered by superannuation.
Now the
battlefield has changed dramatically.
Why would you
choose...
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SMSF and Property
Since time immemorial it has been argued as
to whether the benefits of gearing property
investments outweighed the tax concessional
environment offered by superannuation.
Now the
battlefield has changed dramatically.
Why would you
choose one over the other when you can have the
best of both worlds.
New laws introduced in
September 2007 allow Self Managed Superannuation
Funds (SMSF’s) to, for the first time, buy geared
property in a simple and uncomplicated manner.
SMSF’s can now select a property of their choice, be it
residential or commercial, and borrow up to 80% of
the value of the property.
The most common investment strategy seen in the baby boomer era was to invest all
surplus funds into accessible investments including property and shares and then cashing these
in and contributing the funds into super just prior to retirement.
The only disadvantage of this
strategy was a potentially very large Capital Gains Tax bill.
See more on SMSF Canberra.
However,
Less
