SMSFs or Self managed super funds
are becoming quite prevalent in Australia as the trend of SMSF Property Investment is making it possible for different
individuals to use their retirement savings to invest in the residential
property in the most lucrative and authentic manner. Basically SMSF quite efficiently
contributes in a deposit and then borrows the remaining required funds for
purchasing an SMSF property. Some noticeable benefits of SMSF in the property
investments are mentioned below:
Negative
Gearing for Reducing Tax:
In different cases property investment can be negatively geared that means
after allowing for interest on the borrowings, it is possible that the holding
costs and depreciation of the property make a tax loss but such tax losses can
be off-set against other taxable income of the SMSF like member contributions
or interests on cash assets, etc., that effectively reduces the payable tax by
the SMSF.
Greater
investment Choice:
SMSF offers most advantageous and versatile investment options but without
borrowing, most SMSFs are not large enough to afford property, while by
borrowing, the SMSFs can afford to include property in their assets. This
offers SMSF more choices of asset diversifications.
Direct
Control & Member Preference: Mostly people choose to have an SMSF as with the help
of SMSFs they get more direct control over their superannuation investment
strategy and the asset choices.
All information is provided as
GENERAL INFORMATION and may not be suitable to you because it may contain
general advice that has not been tailored to your personal circumstances.
Please seek personal financial and tax advice prior to acting on this
information. Opinions constitute our judgment at the time of issue and are
subject to change. Future Assist Financial Services Group Pty Ltd does not give
any warranty of accuracy, nor accept any responsibility for errors or omissions
in this document. Future Assist Financial Services Group Pty Ltd (ABN 24 151
337 843, AFSL No. 413674)
