How to Create an SMSF Investment Strategy with Property

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If you’re the trustee to a self-managed super fund (SMSF), you have likely spent time learning how to create an SMSF investment strategy. Working with your financial advisor to strategise your investments is the key to ensuring you have a diverse portfolio that offers optimal returns both now and into retirement. 

What Is an Investment Strategy with Property?

An SMSF investment strategy with property is a tailored financial plan that is created by the trustees of an SMSF, or your financial planner, taking into account the current and future financial needs of each member in the fund. It covers the use of the property as part of the investment portfolio and details the risk of the investment, its liquidity, and tax flow requirements as well as outlining the expected returns both in the short and long term. 

To create an effective SMSF property investment strategy in Australia you should follow these steps:

  • Know your legal requirements- It’s best to engage with a professional to support you through the process.
  • Understand the risks involved with investing in property and the potential for return trade-offs. 
  • Diversify your property investments: Just as your portfolio should be diversified, so should the property in which you invest. 
  • Ensure you have enough cash flow to keep the property maintained and your fund properly managed. For the property you’ll need to cover insurances, maintenance, taxes, and real estate fees. For your SMSF you need to factor in audit fees, bank fees, annual fees, and any pension payments required by fund members. 
  • Review and research potential property investments carefully before purchasing and ensure they represent a good opportunity for growth to support your financial future. 
  • Seek professional advice from a qualified financial advisor or company to ensure your strategy meets the legal requirements and represents an intelligent move for your portfolio. 

The Legal Requirements When Investing Through Your SMSF

Investing in residential property in Australia through your SMSF is not as simple as just outlining your goals and hopes for investment performance. There are strict regulations and laws surrounding your investment strategy creation through SMSF.  

As the trustee of an SMSF, you are legally required to review your investment strategy (with or without property involved) on a regular basis. This review needs to ascertain whether your initial goals and their possible outcomes remain both relevant and achievable. This assessment needs to consider the needs and expectations of all fund members. 

How Corbwood & Associates Can Help

At Corbwood & Associates we’re able to advise on, and connect you with the right professionals with all things related to SMSF investing and wealth creation. We work alongside you and teach you how to create an SMSF investment strategy that helps you prepare for a financially secure retirement for you and your family. 

Understanding the ins and outs of how to create an SMSF investment strategy is something we have years of experience with. Engaging one of the qualified financial advisors in our network reduces your stress and enhances the likelihood of creating a winning high-performing property investment. 

Contact Corbwood & Associates today on 07 5609 8874 and learn how to create a winning SMSF investment strategy.