BenefitsScroll to begin.
When it comes to saving for retirement, many people now opt for a self-managed super fund (SMSF)over the traditional route of a professionally managed fund. There are numerous reasons to choose an SMSF over a conventional fund. Here are some of the benefits of SMSF, including the substantial benefits of buying property through SMSF:
Greater investment choice
One of the most significant advantages of self-managed super funds is the level of investment choice. Compared with traditional super funds, SMSFs offer a much broader range of investment options, including residential and commercial property, shares, term deposits, fixed income products, physical commodities and collectables.
Property investment through SMSF
Looking at how to increase your super? One of the biggest benefits of self-managed super funds is SMSF property investment. With SMSFs, you can enjoy the substantial tax benefits of investment properties, including concessional tax rates on rental income and future capital gains. SMSF property investing is a highly effective tool for maximising returns. What’s more, an SMSF loan can help you get there sooner!
Greater flexibility and control
SMSFs afford their members a much greater level of flexibility and control than externally managed funds. Directly managing your own super allows you to make fast investment decisions and adjustments where necessary. Also, SMSFs allow for up to six members, meaning you can pool your super and invest in assets — such as property — that you may not have been able to on your own.
SMSF tax benefits
The tax benefits of SMSFs are significant. Along with being taxed at the 15% concessional rate, SMSFs allow you to implement tax strategies to benefit your personal situation — including strategies to help you increase savings and decrease tax for an effective SMSF transition to retirement. Further, SMSF assets, including property investments, are generally protected from creditors in the event of a bankruptcy.
An SMSF can be more economical to maintain than professionally managed funds. Most SMSF expenses are fixed, whereas industry and retail funds charge a percentage of the fund’s balance in fees. So, SMSFs become more cost-effective the more they grow. Investing in property through an SMSF is a great way to increase the fund’s overall value and make it more economically viable to run.
WT Capital — your SMSF property investment experts.
At WT Capital, we truly are your experts in SMSF property investment. With decades of combined property and financial market experience, we understand the powerful benefits of investing in property through an SMSF. We’ve created effective strategies that have helped hundreds of clients start or further develop their dream portfolios.
Keen to learn more about what we do and how we can help you on your investment journey? Have a look at our successful client case studies, our SMSF eligibility guide, and our handy retirement calculator.
If you’d like to chat further about the benefits of SMSF property investment through WT Capital, simply get in touch with our friendly, professional team today. We look forward to hearing from you!
Frequently Asked Questions.
Several tax benefits come with SMSFs and investing in property through SMSF. Along with a concessional tax rate of 15%, SMSFs generally enjoy greater flexibility in utilising tax strategies for income and capital gains.
There are many advantages of SMSFs. Compared to traditional funds, SMSFs give you greater flexibility and control over investment choices. There are also significant tax benefits that come with SMSFs, and they can be cheaper to run than other super funds.
There are numerous benefits of investing in property through SMSF. As well as the savings that come through concessional tax rates, you’ll also enjoy the long-term financial protection and capital gains that come with property — not to mention the healthy boost to your retirement savings!
At WT Capital, we utilise our decades of combined experience in property and finance to bring you tried and tested investment strategies that you can successfully bank on. We’ve completed hundreds of property investment transactions, and we are passionate about helping our clients achieve a higher “financial altitude”!
You can take several strategies to maximise returns on your investment property, including maintaining up-to-date records of all expenses, tracking and claiming depreciation, and claiming correctly for repairs and other costs. You should speak with a tax professional to ensure you get the maximum return on your investment.
Several potential tax deductions for investment properties include repairs and maintenance, depreciation, loan interest, and various rates and fees. It is always best to engage a professional for guidance on tax deductions.