Why use residential property as an asset class in SMSF
by Wealth Know How in SMSF
Residential Property is a very popular topic and in this series of 4 videos we look at this asset class for Self-Managed Super Funds (SMSFs). Many investors really like the fact that they can bring their experience in property investment to their SMSF. In the first video of the series, James Dunn explains the appeal of this type of investment such as stability and capital growth. Depending on your investment strategy and time horizon James provides a perspective on just why this might suit you.
- 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 27 Jan 14
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Residential Property is a very popular topic and in this series of 4 videos we look at this asset class for Self-Managed Super Funds (SMSFs). Many investors really like the fact that they can bring their experience in property investment to their SMSF. In the first video of the series, James Dunn explains the appeal of this type of investment such as stability and capital growth. Depending on your investment strategy and time horizon James provides a perspective on just why this might suit you.
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
Many investors who are experienced at property investing like the fact that they can bring this experience to their SMSF. You choose which property to buy, manage the rent and any expenses and decide when it is time to sell.
Just as outside super, these investors like the fact that property is a tangible asset compared to managed funds or shares and is not repriced daily, so their decision-making is not confused by the noise and volatility that can exist when investing in shares and managed funds. Residential property is primarily a capital growth-based asset, and because of its stability relative to shares, it can provide a solid long-term way to boost the value of SMSFs.
Property as an asset class is a long-term investment, which suits the time horizon of many SMSFs, which could be managing money for more than 40 years.
However, like any investment in a SMSF, the fund’s trust deed must enable property to be bought and property must form part of your fund’s prudent investment strategy.
There are also associated compliance issues that need to be managed when investing in residential property through a SMSF. For example, a residential property must not be bought from or rented to any member of the SMSF or any of the member’s family.