Is SMSF Property Investment Worth It?

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If you’ve begun investigating SMSF investment options and you’re wondering ‘is SMSF property investment worth it?’, you’re not alone. SMSF property investment can be confusing and seem overwhelmingly complex at first but it can also reap great returns and help boost your retirement balance when done properly. 


Investment Options Through Your SMSF

When deciding on your SMSF investment strategy, you’ll note that there are a number of options available to you. In addition to property, you can invest your balance in:

  • Cash and term deposits
  • Shares, both Australian and International 
  • Stocks and bonds
  • Collectables, including cars, paintings, antiques, jewelry 
  • Fixed income products 
  • Physical commodities such as wheat, oil, natural gas 


Why Choose to Invest in Property as Part of Your SMSF Strategy 

With so many options to choose from you might be wondering why you would choose to invest in property or if SMSF property investment is worth it. Ultimately, it will come down to a few factors such as whether you have a large enough balance to invest in property. You will also need to determine whether it will help you meet the financial goals and needs of the fund members. 

Property is viewed as a long-term investment strategy and one that will require patience to see results but there are many benefits of investing in property through your SMSF. These include:

  • Growing your retirement savings faster: allows you to prepare for a more financially secure future. 
  • Providing a steady retirement income: once your SMSF property is owned in full via your fund the rental income provides you with an ongoing income.
  • Paying less capital gains tax should you sell: CGT is capped at 10% for SMSF investments or 0% if you have started a pension.
  • Creating cash flow for future investment: if your investment is positively geared the rent flowing into your super gives you an increased balance to put towards additional SMSF investments.  
  • Reduced tax on contributions: any interest accrued on an SMSF property loan (LRBA) is tax deductible. This can help to reduce your fund’s overall tax liability. 


Need Help? 

If you have decided that SMSF property investment is worth it but you feel a little lost in the details, Corbwood & Associates can help. Our expert financial advisors can help you create a winning investment strategy for your SMSF. We provide clear, easy to understand advice as well as offering ongoing management services and support to keep your fund on track. 

At Corbwood & Associates, we are passionate about helping our clients prepare for an enjoyable and financially secure retirement. Contact us today on 07 5609 7670 to arrange a consultation to see how we can help secure your financial future.