More and more Australians are realizing the benefits of not only setting up a self-managed super fund (SMSF) but also using their SMSF to invest in real estate. The obvious advantage of this option is that you can take advantage of Super, to prepare for retirement.
If you don't own a stake in a traditional super fund and have a third party manage your investments, SMSF excise return allows you to actively interact with your super fund, invest your own money, and control the future of your retirement fund. SMSF can be used to purchase debt capital.
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When you own 1/3 of the total property price, you can deposit that amount and use it to get the rest from a reliable bank or lender. In times of high volatility in the stock market, buying a property with a retirement plan is a welcome option.
Real estate is also a more attractive investment option for lenders, because there are no fluctuations in value like the stock market and because the movable property is better. If you are one of the many people who believe that property is your super, you will get more benefit from using an annuity to buy property.
When you use an annuity to buy property, you only pay 15% of the tax, not up to 46.5% of the tax you pay beyond the super. Experience the joy of stable early retirement by buying a commercial or residential property with your SMSF, each with different rules.