SMSF Finance
Buying property through an SMSF can be a fantastic way to build long-term wealth. But the rules around SMSF borrowing are strict, and lenders can be demanding, so it’s important to work with a finance brokerage that excels in this area, like Market Street Finance.
Some investors buy residential property for their SMSF. Others buy a commercial property and lease it to their business – which can be a shrewd strategy, provided you charge a fair market rent, as per the regulations.
There are three reasons why so many investors favour SMSF property investment. First, you can use leverage to significantly increase your superannuation asset base. Second, you can grow your retirement savings in a tax-effective structure. Third, property can be a nice form of diversification if you’re already heavily invested in equities.
If you’re unsure how SMSF property investment works or whether it’s suitable for you, we can talk you through the regulations and explain the pros and cons.
Contact us today to discuss your SMSF finance scenario.
Have a question?
Take a look at our FAQ’s to see if we can help
What is SMSF property investment?
SMSF property investment involves using your Self-Managed Super Fund (SMSF) to purchase property, either residential or commercial. This strategy can facilitate long-term wealth accumulation while potentially offering tax benefits and diversifying your investment portfolio. Market Street Finance can guide you through leveraging your SMSF optimally for property investment, helping you understand the nuances and compliance requirements.
Can I lease a commercial property purchased through SMSF to my business?
Yes, you can lease a commercial property purchased through your SMSF to your business, provided you adhere to the regulatory requirement of charging a fair market rent. This strategy can be quite shrewd, helping in building your superannuation while potentially benefiting your business. We are here to help you navigate the intricacies to effectively employ this strategy.
What are the benefits of SMSF property investment?
SMSF property investment offers several advantages, including the ability to leverage your funds to enhance your superannuation asset base substantially. It allows you to grow your retirement savings in a tax-effective structure. Furthermore, if you are primarily invested in equities, adding property to your portfolio can provide a beneficial diversification, potentially mitigating risks and enhancing returns.
What do I need to consider before venturing into SMSF property investment?
Before venturing into SMSF property investment, it’s crucial to have a clear understanding of the regulatory landscape and compliance requirements. You must consider the fund’s liquidity and whether it can sustain property ownership costs, including maintenance, property management fees, and others. Moreover, understanding the tax implications and the strategy’s alignment with your retirement goals is essential. We can guide you through these aspects, helping you make an informed decision.
How can Market Street Finance assist me in SMSF property investment?
At Market Street Finance, we excel in SMSF finance, offering guidance grounded in deep expertise in this field. We can help you understand the regulations, pros, and cons associated with SMSF property investment, facilitating a strategy that aligns with your financial goals. Whether it’s helping you find the right lender or advising you on leveraging SMSF property investment optimally, we are here to assist you at every step. We also work with a panel of experts who can advise where we can’t, on matters of tax and investment advice.
