Buy property with a SMSF
Until recently, self managed super funds (SMSF) in Australia were not permitted to borrow to invest in property. However, changes to the Superannuation Industry Supervision Act 1993 (SIS) on 24 September 2007 now means that a self managed super fund in Australia can borrow funds to invest in direct property. http://www.intellichoice.com.au/
Darin Hindmarsh, CEO of Intellichoice says “there is no limit to the type of property you can purchase through your SMSF, for example, residential, commercial, retail, rural or even holiday apartments.”
“It’s important to remember that if you are buying property through a SMSF, it is for investment purposes only and you cannot live in it,” says Hindmarsh.
There are many benefits to borrowing for property through a SMSF, including the ability to leverage an asset, Australians only pay 10% capital gains if the property is held for more than 12 months and potentially nothing if the property is sold when the super fund is in pension phase.
Hindmarsh states that “the beauty of getting a SMSF home loan to buy property is that all interest costs for the home loan is tax deductible. Best of all, the lender does not have access to other assets in your SMSF, so if something happens, your assets are still protected.”
“Rent generated from the property also does not count as a tax contribution.”
If you are thinking of buying property with your self managed super fund or need a SMSF home loan, the mortgage brokers at Intellichoice can assist. Call +61 7 3624 1900 for an obligation free appointment to discuss further about SMSF loans or visit http://www.intellichoice.com.au for more details.
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