Benefits of buying property in your super
SMSFs allow you to access some key benefits, such as:
- Control - You decide which property you buy, how you manage the rent and any expenses, and determine when it’s time to sell.
- Borrowing - You can borrow to buy a property, which can help you purchase sooner.
- Buying power - Combining your super with other members can help you purchase a property together.
- Business premises - If you are a small business owner, you may be able to buy your business premises using your super.
- Tax savings - If your SMSF is in the pension phase, that is the members of your SMSF are receiving pension payments from your fund, the sale of the property may be exempt from capital gains tax.
- Asset protection - Assets held in a super fund (including property) are generally protected from creditors.
How can we help?
There are a number of rules around buying property inside super, including the types of borrowing arrangements that are allowed.
You also need to be aware of the risks associated with having a large asset like a property in your super. Property can be slow or difficult to sell, and this may potentially be a problem if one of your SMSF members needs to access their super at short notice.
We can help you work out if buying property inside your super is right for you. If it is, we can also help you put the right structures in place to ensure you’re doing it the right way.
If you’re ready to get started with an SMSF, apply online in around 15 minutes or call us on 1300 767 483 between 8.30am and 6.00pm AEST Monday to Friday.
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