Using self-managed funds to buy property is perhaps the most common and intelligent way that Australians use to invest in residential property markets.
Self-managed super fund property investment rules permit Australians to invest in real estate as part of a diversified asset allocation strategy. Real estate offers a safe and reliable investment category for individuals wanting to avoid higher risk options when approaching their retirement age.
The transition-to-retirement rules also allow Australians to access their super early whilst continuing to work up to a planned retirement age. By doing so, they can maintain their financial commitments whilst reducing work hours to phase out of full-time work.
The tax treatment of superannuation contributions and earnings is extraordinarily generous in Australia and makes superannuation, hands-down, the most efficient and financially effective structure for maximising and recycling investment property gains and returns.
Making the most out of self-managed super fund property investment rules
The self-managed super fund and property investment rules permit Australians to invest in real estate over the mid-to-long term to supplement or replace their incomes in retirement.
Property assets should comprise a key part of your overall investment mix and our financial planning partners can assist you to determine the ideal investment plan for your particular risk preferences, personal goals and lifestyle options.
Many of our clients choose to boost their property market purchasing power by using limited recourse borrowing arrangements to finance the purchase of strategically chosen properties through their self-managed super funds.
And for properties that are negatively geared, the tax savings can be compounded through the super system where the ‘tax take’ is lower and your tax savings can be maximised.
Using super to transition-to-retirement successfully
How many times have you heard of Australians retiring then coming back to work, either because their financial plan didn’t work out or, more commonly, because they got disillusioned and couldn’t adjust.
Planning your transition-to-retirement is essential to retiring successfully, and for many people who have worked hard for so long, having an adjustment period, when you scale back on work but continue earning an income, is critical to “crossing the bridge” to the next stage of life.
The superannuation transition-to-retirement rules permit Australians aged 55 to 60 to use their super to commence paying a pension to supplement their other income while they continue to work. This allows them to scale back that work without suffering loss of income at home.
For Australians that want to maintain their financial arrangements but improve their lifestyle, this can be a key way to achieve the adjustment needed to move from full-time work to successful retiree.
Talk to our experts today about how your self-managed superannuation funds can be structured to provide transition-to-retirement benefits for you.
Why self-managed super funds are the best way to purchase residential property
As with superannuation, property is a mid-to-long term investment asset. And like real estate, superannuation grows steadily over time, giving you the financial security and measurable results you need and want to head into retirement with confidence.
Unlike industry and retail funds, self-managed super funds are controlled by members and made for taxpayers who want to make their own choices about how they invest.
This gives individuals who use self-managed super funds a distinct advantage – they can seek out special investment opportunities that institutional funds ignore, like well researched one-off direct property acquisitions.
Self-managed super funds are given generous tax concessions under Australia’s taxation system. The concessions apply to both contributions and earnings on most investment assets purchased by compliant funds. In many cases, the tax rate (only 15%!!) is less than half what an individual would otherwise pay in income tax on the same investment outside the superannuation environment.
This empowers members to maximise the returns available through positively and negatively geared properties in professionally selected markets.
No other property investment structure offers this level of tax advantage, nor the financial efficiency that can be achieved for property related assets.
Who are Corbwood & Associates?
We are a specialist real estate investment firm located on the Gold Coast and assisting thousands of clients around the country to achieve their property investment dreams.
We are uniquely dedicated to the wants and needs of Australian families who seek to enjoy life with family and friends long into their retirement.
Too many hard-working Australians have lost their retirement savings in the volatile ups and downs of riskier investment categories.
Our exclusive network of real estate agents, financial planners, accountants and mortgage brokers work together with one goal in mind … making sure that your superannuation funds are safely invested in well researched ‘bricks and mortar’ assets which will pay you tax efficient returns for years to come.
Contact our friendly staff today or drop into our office for a coffee and a chat, to find out more about how we can help you to secure your financial future today.