WANT TO OWN AN INVESTMENT PROPERTY?
With a Jarospace SMSF, you could use your super to invest in a residential property or business premises.
Your Super in bricks and mortar.
If the idea of investing in stocks and shares leaves you feeling uneasy, then owning a physical asset such as a property may give you more peace of mind for your super. That’s not to say this investment type is risk free, however an SMSF gives you the freedom to invest in property.
Many of our clients have used their superannuation to buy an investment property, either buying it individually, or pooling the funds of up to four people as part of their trust structure. Having a tangible asset that not only appreciates in value, but also provides a positive cash flow stream in retirement is one of the main reasons so many people prefer to use their SMSF to buy property as an investment.
Serious Tax Advantages
Whether you’re investing in commercial property or residential property, there are major tax benefits to investing in property with an SMSF compared to a private investment. Your investment income is taxed at only 15%, so your SMSF is able to keep more of the rental income than you would if you invested as an individual. Capital Gains Tax is 10 % after 12 months and 0% if you sell when you hit retirement age.
Your Money, Your Choice
In a traditional retail or industry superfund, you have limited choice for how your super is invested. Sure you can say what kind of investment strategy you want to pursue, but your money is at the mercy of a fund manager you’ll probably never meet. With a Jarospace SMSF, you choose where your money goes and if you decide that the Australian property market offers sufficient benefits for investment, now you can get your foot on the ladder.
Access Lending for Purchase
SMSFs can borrow money from a lender, i.e get a mortgage, by entering into a limited recourse borrowing arrangement (LRBA).
WHY JAROSPACE
MORE TIME
Managing an SMSF involves extensive paperwork. This includes compliance documents, tax returns, financial statements, and investment records. But we make the entire process simple. With us handling the boring details, you’ll have more time to focus on best investment strategies to improve your SMSF performance.
PEACE OF MIND
When handling an SMSF, mistakes can often have severe financial consequences. We ensure your compliance with ATO and ASIC regulations, while strategically minimising your tax obligations and any risk of fines or penalties. We deliver accurate investment reporting with cutting-edge software so you always know your funds’ progress.
TRANSPARENCY
We operate in your best interest. We keep your financial information confidential and we have no external incentives or commissions. This means our recommendations are based solely on what is best for your SMSF, so all your decisions and plans align with your unique financial objectives.
Benefits of Using Super To Buy Property
Risks of Using Super To Buy Property
There’s a reason so many of our clients use their superannuation to buy property through an SMSF.
- Property is generally considered to be a safe investment
- A growing population means there’s likely to be a bigger demand for rental property.
- Your SMSF can gain rental income from your investment in property
- The tax advantages are excellent – 15% tax on investment income and 10% CGT are exciting for property investors.
- If you sell the property in retirement, you pay 0% capital gains tax.
Buying an investment property has many benefits, as well as some responsibilities and risks to consider.
- Properties are not risk-free investments and can have complications.
- You may likely need a loan to purchase the property. This can be a timely process.
- There are additional costs involved in purchasing property e.g. lawyers and stamp duty, mortgage interest, etc.
- As a landlord, you will need to manage the tenants of investment property.
- If you put all of your super balance into a property, this reduces the diversification of your investments.
CONTACT US
You can also write to us at
info@jarospace.com
Or call us on 0489 074 123
Business hours
9 am – 5 pm
Monday – Friday
We will respond to your enquiry
within 2 business days.