I hope you’ve had a fantastic year and are looking forward to a well-deserved break before the new year kicks in.
This week’s topic is one that often raises eyebrows and curiosity: ‘Why do people choose to buy property with their super?’ Specifically, within self-managed super funds (SMSFs). Let’s dive into the key reasons behind this strategic move.
1. Stability in a Volatile Market
Many individuals shy away from the unpredictable nature of the stock market. The ups and downs can be dizzying, and some seek refuge in the stability that property investment offers.
Property values tend to be more resilient, providing a sense of security in an otherwise volatile market.
2. Asset Control
When you invest in property within your self-managed super fund, you gain a unique level of control over your assets.
Unlike traditional investments spread across various companies, a property in your super fund is a tangible asset you can locate and monitor.
This level of control brings peace of mind and a clear understanding of your investment.
3. Capital Gains Tax Savings
One of the significant perks of investing in property through a self-managed super fund is the potential for substantial capital gains tax savings.
During your working years, selling a property held in your SMSF may incur a maximum capital gains tax of around 10%.
As you transition into retirement, these tax obligations can decrease, with the possibility of reaching zero capital gains tax upon sale.
These tax advantages make self-managed super funds an attractive option for those seeking to optimize their financial strategies.
To get the best advice on if purchasing a property in your self-managed super fund is right for your personal situation it is recommended that you speak to a financial planner.
If you need a referral to one of my recommended financial planners please reach out.
Ready to Explore Your Property Options? Book a Strategy Call Today!
Ready to take the next step? Book a strategy call with me by clicking here to arrange a time where we can discuss what options are available for your personal situation.
Wishing you a fantastic week ahead, and I look forward to connecting with you again in 2024!
Regards,
Geoff Tomkins
Buyer’s Advocate
PH: 0404 852 781
