Real Estate property investment through SMSF loans is no doubt the most tax-savvy and smartest way to improve the total return on investment of a superfund.
You can avail self managed super fund (SMSF) loans to buy investment properties and enjoy quick returns. All it requires is a smart property investment strategy.
Whether you want to effectively turbo-charge your overall retirement savings or you wish to make your super fund a healthy source of income in near future, you might as well work on a property investment strategy backed by various SMSF loan packages.
Read on to know why SMSF loans for property acquisitions have been so popular with Australian residents:
1. It doesn’t matter if you don’t have an SMSF already. You can set it up now and apply for SMSF loans right after that.
2. You can acquire properties way more expensive than you (or your superfund) can afford right now. Only SMSFs enable you to ‘borrow’ money for investment purposes.
3. When you borrow money via self managed super fund loans, you no longer need to rely on fund managers. You can make your own property investment decisions.
4. Your net super balance can be increased by as much as 100 to 150 percent by purchasing residential or commercial properties financed by self managed super fund loans. On a bigger super balance, you stand the chance of experiencing compound growth too.
5. SMSF loans can be availed for buying just about any type of property. From offices and commercial spaces to factories and medial suites, you can go for any property you believe will provide healthy rental income or appreciate over the next few years.
6. Since you get concessional tax benefits, it is possible to repay the total loan amount at a much faster rate after acquiring a property.
7. If you’re going to turn 60 anytime soon, you’d have to pay no tax on income or capital gains to the government. This is a substantial rebate that can indeed turbo-charge your retirement savings basket.
8. You can use the rental income obtained from the investment property rented out to an individual or business to repay the debt or interest amount from time to time.
9. There is no dearth of options when it comes to self managed super fund loans. A property investor can choose fixed, variable or combination loan schemes depending upon his/her property investment strategy.
10. Terms of these loans are quite flexible as compared to most other property loans in Australia. This is one of the main reasons why super fund loans are so popular with Australian residents who manage SMSFs. Who wouldn’t want a loan term as long as 30 years or as short as 1 year?
The fundamental logic behind the strategy of making property investments backed by self managed super fund loans is that you can increase the total return on investment significantly by increasing the value of the superfund.