Hi Property Lovers
Last Wednesday The Financial Review ran a interesting story regarding Self Managed Super Funds. Buying property inside a self managed super fund has advantages, but it must be handled professionally.
I'm going to add some interesting quotes from the article that i think may be help full and interesting.
"One advantage of direct control is that for the past 2 years trustee's of SMSF's have been able to borrow to increase returns. Although that borrowing is usually against property and only for limited resource loans (the financier can only take action against the property if the deal goes bad) for instalment purchase of the property, it counts as a significant edge. Super funds are normally forbidden to borrowing money."
"The set rules that allow do-it-yourself (DIY) super funds to borrow 0r invest are reasonably clear. the rules say DIY funds can generally not borrow to make investments unless they follow a particular process."
"Super funds are mindful of the risk, using the strategy correctly can introduce new diversification to a long term super fund portfolio"
PROPERTY INVESTING IS A LONG-TERM STRATEGY, PREFERABLY OVER TEN YEARS. INVESTMENTS FOR SHORTER PERIODS ARE LESS BENEFICIAL BECAUSE OF EXTRA COSTS, SUCH AS STAMP DUTY AND AGENT EXPENSES.
If you would like a copy of this article, please don't hesitate to contact me.
Thinking of buying or selling in Nedlands? Call me anytime.
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