The Benefits Of Investing In Property Using a SMSF Loan.
It is important that you are in total control of your investments, and you should always try to take a hands-on approach when it comes to your retirement, and future wealth. A self-managed super fund, is not like a public super fund, and so this allows you to invest some of your money in the property market. Many Australians invest in commercial properties using their SMSF, and if you are a business owner, then you get to take advantage of the many benefits.
If it is your intention to take out one of the many SMSF loans, then you can do this through a LRBA (Limited Recourse Borrowing Arrangement). Once set up, there are many benefits to be had from SMSF property investment, and we will explore just a few of them here today.
- You can take advantage of tax effective leasing – This is completely different from residential property, and so investing in any commercial property will allow you to actually lease the property back to yourself. If you’re a business owner and you want to buy a business premises that you will use, then this is a very smart financial move indeed. If you buy this business property within your SMSF, you can then grow your fund balance, and your business can also claim the lease money, as a further tax deduction. It’s a win-win situation.
- It builds retirement income – Even when you have decided to retire, you might still want to lease your former business premises to someone else. This means that you will be receiving income on a monthly basis for the duration of the rental agreement. This, in turn, will provide you with regular money, that you can then use to supplement your retirement income.
- You’re in control – With your SMSF, you’re always in control of your investments, and there are many different options that are available to choose from. You can, of course, invest in shares in Australian companies, and international companies. You can invest in cash and term deposits, collectables like fine art, fixed income products, and other physical commodities.
Anything to do with your future finances should be discussed with a financial adviser that you trust. It is their job to make sure that you make investments in the safest options, that will help you to meet all of your financial goals for the future. They will provide you with essential support and guidance, that will hopefully guide you successfully towards your retirement.