Investing in your residential property is a great way to secure your finances for the future. It does not matter whether this is your first investment property or your fifth; we are able to help make the process as simple and stress free as possible.
Contact us at any time to have your free and no obligation consultation so you can find out how to drive success to your investment. We have helped numerous customers pay off their mortgages quicker than expected, legally reduce the amount of taxes that they paid, and secure their financial future.
When you come to us for help, you can be confident knowing that we will be there for you throughout the entire process. We assist you with establishing a property portfolio that will provide you with a steady additional income in the future for many years to come. The first step requires us to analyze your current financial situation. Once this has been done, we will devise an investment strategy that meets your deadline and budget.
Investing in Residential Property through SMSF
One of the main advantages of having a self-managed super fund is that you have the ability to invest directly in residential property. When you own a residential investment property within your SMSF, you will find that it can be significantly more tax effective than investing in a property in your name.
The Tax Advantages of Investing Through SMSF
The maximum amount of tax that your SMSF will pay on rental income is 15%. Additionally, if your SMSF is in pension phase the rate drops to 0%. This is a great rate when you compare it to the rental income tax rate that you would pay in your name, which can be as high as 46.5%. Moreover, if your SMSF holds the property for more than a year, any capital gain made on the sale of the investment property will have a taxed rate of no more than 10%.
Since it is usually costly to purchase a residential property that has the potential to provide good long term returns and capital growth, it can be ideal to borrow funds to purchase the investment property from your SMSF. When you take this route, you can have the appropriate level of diversification within your fund.