1. Home
  2. Knowledge Base
  3. Self Managed Super Funds (SMSF) Lending
  4. 7 reasons why a SMSF is a great way to purchase investment property

7 Reasons why a SMSF is a great way to purchase investment property:

1. You can reduce your tax and potentially improve your net asset position by over $1,000,000 in a 15-20 year period.*
2. Rental income from your investment property is taxed significantly lower when it is paid directly into a SMSF.
3. In retirement after age 60, income derived from assets held within your SMSF is 100% TAX FREE.
4. It is possible to leverage your home equity and self-finance the property purchase at commercial interest rates, significantly reducing your home loan repayment time.*
5. Certain tax benefits of this strategy can allow you to completely pay off your investment property in one investment cycle of 7-10 years.*
6. The entire setup cost including legal costs can be funded through your SMSF.*
7. Capital Gains Tax (CGT) is NIL after age 60 and in retirement on the profit you realise through the appreciation of your real estate assets in a SMSF.

*This information is based upon a specific case study and current market conditions and does not take account of your objectives, financial situation or needs. No part of this information should be construed as a solicitation to make any financial investment. It is provided for information purposes only. We recommend you obtain financial, legal and taxation advice before making any financial investment decision.

Was this article helpful?

Related Articles