SMSF
At Compound Property we help clients source high growth and high cashflow properties that can be purchased through your Self Managed Super Fund.
What Is It?
A self-managed super fund (SMSF) is a private super fund that you manage yourself. SMSFs are different to industry and retail super funds.
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When you manage your own super, you put the money you would normally put in a retail or industry super fund into your own SMSF. You choose the investments and the insurance.
Your SMSF can have no more than six members. As a member, you are a trustee of the fund — or you can get a corporate trustee. In either case, you are responsible for the fund.
What Are The Benefits?
Leverage
One of the biggest benefits of investing in property is the opportunity to leverage. Investing in property through SMSF allows you to borrow up to 80% of the purchase price which means you can have larger a value asset growing rather than if it was in a managed fund which over time can increase your returns.
Tax Benefits
Buying property in a SMSF has some major tax benefits. The first is the fund is required to pay only 15% tax on rental income from the property as opposed to your personal tax rate outside of SMSF. The second is when selling your property if held for longer than 12 months, the fund receives a one third discount on any capital gain it makes upon sale, bringing any capital gains tax liability down to 10%. (As always, confirm with your accountant)
Invest In Property
Property is a tangible asset that has a proven track record over the last 100 years. Investing through a SMSF allows you to take control and decide exactly what investments you want to make. With the use of leverage and historic returns then Australian property is a great way to grow your wealth.
Cashflow
When in retirement it is important to have cash flow also called passive income. This is especially important when you stop working and want to enjoy your retirement years. Property is a great way to provide this through rental income. As part of our service we will look at what that passive income target is and how best to achieve that through strategic property investment.
FAQs
Here are some of our most common questions regarding SMSF.
If you have a question that is not listed here or would like to speak to our team about your personal circumstances then you can contact the Compound Property team through our email: hello@compoundproperty.com.au.
Have a Question?
You can contact the Compound Property team at any time through our email, hello@compoundproperty.com.au.
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Email Us
General enquiry:
hello@compoundproperty.com.au
Office Hours
Mon - Fri
8:00 am – 6:00 pm
Saturday
9:00 am – 4:00 pm