Self-managed super the ideal vehicle to build wealth through property investment

Ever since the global financial crisis hit there has been an upsurge in self-managed super funds (SMSFs), as many managed super funds recorded big losses, along with people's hard-earned retirement savings.

Super funds invest in income-bearing vehicles with the goal of producing investments that their members or beneficiaries can retire comfortably on, however they tend to charge fees and make the investment decisions. While many may not know it, these same goals can be achieved (and sometimes more effectively) by managing one’s own super fund.

Managing one’s own super fund allows the beneficiary to take control of where funds are invested, be it in managed funds, share-related investments, bank or term deposits or property, making self-managed super funds the ideal vehicle to build retirement wealth, especially through property.

Property investing is the backbone of most successful funds, and when it comes to managing your own super fund, the same holds true. Making it even more attractive is the fact your personal SMSF can invest in both residential property and in commercial property – even the premises that house your own business.

For those who need assistance to set up or manage their own SMSF, there are numerous services and consultants that can help with establishing and auditing an SMSF. These range from online services and financial advisories to specialist firms.

Most people’s real wealth is created directly or indirectly through or via property.  So why put your hard-earned cash under someone else’s control when we can help you set up a SMSF and  put your hard-earned cash in solid foundations of bricks and mortar?

With one in five Australian households owning an investment property, it’s surprising that less than 4% have used their superannuation to buy one. This means that many people are missing out on the great opportunity to invest in direct property using their super fund. Imagine selling your investment property in retirement, say in 10, 20 or 30 years’ time, and not having to pay any capital gains tax.

Superannuation is an effective way for Australians to invest, and it is taxed at 15% only. Capital gains tax is 10% if the investment is held for more than 12 months or nothing  if sold in pension phase. There is nothing outside of superannuation that can compete with this favourable environment. On the back of these parameters, a superannuation strategy with property becomes one of the best investment options available to Australian’s today.