How to determine if an investment in residential property suits your SMSF
by Wealth Know How in Property
This video looks at how you might go about determining if property investment suits your SMSF. James Dunn looks at the advantages and disadvantages for property investing and whether it might suits your investment strategy needs. There are a number of factors to be considered before making a decision so have a look at our video.
- sponsor - Wealth Know How
Wealth Know How is the online network helping people manage their wealth through financial education. Whether you are looking for simple ways to better manage your cash, or you are after a complete strategy on how to save for retirement, we can help you understand your options. It is important to have a vision for your future, but its knowledge not dreams that will ultimately deliver financial success.
Published on 13 Jan 14
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This video looks at how you might go about determining if property investment suits your SMSF. James Dunn looks at the advantages and disadvantages for property investing and whether it might suits your investment strategy needs. There are a number of factors to be considered before making a decision so have a look at our video.
Sponsor - Wealth Know How
Wealth Know How is the online network helping people manage their wealth through financial education. Whether you are looking for simple ways to better manage your cash, or you are after a complete strategy on how to save for retirement, we can help you understand your options. It is important to have a vision for your future, but its knowledge not dreams that will ultimately deliver financial success.
-
Venezuela tension heats up
Duration 03:16
-
Aussie dollar surprises market
Duration 03:10
-
Markets climb as investors watch US healthcare bill
Duration 02:31
Property is not a risk-free investment, and could be more risky than investing in cash or other defensive asset classes – so the investor must be able to tolerate that risk.
The advantage of an SMSF investing in property is the generous tax concessions given to super. Rent from the property investment may be taxed at 15% and capital gains from selling the property may be as low as 10% while saving for retirement. If you decide to take a pension from your SMSF any rent and capital gains may be tax-free.
The fund must have enough capital in the SMSF to buy the property (this is required by the bank) and pay for stamp duties, legal fees and other setup costs.
Also, the fund must have the correct documentation and Trust Deed that allows property investing and, if a loan is required, allows limited-recourse borrowing.