Got a Retirement Plan? Own an Investment Property With Your SMSF
Many people would agree that owning an investment property can help secure your retirement income. Sadly, this plan is way out of reach for most people and worse is that it is a bit too late for them to realise that buying a property is a very costly and high maintenance feat.
If you are brave enough to take the risk, companies will usually present you with a 'Negative Gear' investment approach. However, this means that you need to:
* refinance an existing owner occupied property
* pay mortgage insurance
* take a new loan against your current income
* deal with the ATO for tax minimisation
* consolidate other debts
Then, even after all this is done, you still have to spend money to pay for your new loan. What if you do not have an existing property to use as additional security or enough deposit? And do not forget the additional costs of Lenders Mortgage Insurance (LMI) stamp duty, legal fees etc.
Say, you managed to get all through these but there is still more to buying than maintaining a property. If your property becomes vacant, your monthly contribution will be used to cover up the rental loss.
Fortunately, there is another way you can buy your first or subsequent investment properties without any cash outlay from you. No need for refinancing your existing Home Loan either. Even if you have one and have some issues with your personal credit file, these will not matter.
Have you heard of Self-Managed Superannuation Fund (SMSF) and use it to buy investment property? Yes, you can take advantage of your compulsory 9% super contribution to buy your investment property. You will still be using the negative gearing approach to reduce your income tax and the loan interest is deducted from your tax! If you do proceed, all of the establishment costs, legal fees, independent financial advice, duties etc. are paid by your SMSF, not out of your pocket.
Also, by using your SMSF to fund your investment property the tax on your rental income will be halved. In addition, properties sold by owners aged over 60 years old and above will not be charged of Capital Gains Tax.
How does the SMSF work?
Your SMSF appoints a Security Custodian to purchase investment residential property on its behalf and as security for the loan. The SMSF contributes cash to pay the deposit and to meet legal costs and stamp duty. The SMSF then manages the property in the same way as any other real estate investment. The property is held in trust and the legal title is either transferred to the SMSF when the loan has been repaid or the property may be sold.
The best part about all of this, Super Investment Ideas will help you take control of your financial future for FREE! Call them now and take advantage of this wealth building strategy too. Dial 07 3282 5027 for Brisbane and 08 7071 7222 for Adelaide or log on to [http://buy-investmentproperty.com.au/]
If you are brave enough to take the risk, companies will usually present you with a 'Negative Gear' investment approach. However, this means that you need to:
* refinance an existing owner occupied property
* pay mortgage insurance
* take a new loan against your current income
* deal with the ATO for tax minimisation
* consolidate other debts
Then, even after all this is done, you still have to spend money to pay for your new loan. What if you do not have an existing property to use as additional security or enough deposit? And do not forget the additional costs of Lenders Mortgage Insurance (LMI) stamp duty, legal fees etc.
Say, you managed to get all through these but there is still more to buying than maintaining a property. If your property becomes vacant, your monthly contribution will be used to cover up the rental loss.
Fortunately, there is another way you can buy your first or subsequent investment properties without any cash outlay from you. No need for refinancing your existing Home Loan either. Even if you have one and have some issues with your personal credit file, these will not matter.
Have you heard of Self-Managed Superannuation Fund (SMSF) and use it to buy investment property? Yes, you can take advantage of your compulsory 9% super contribution to buy your investment property. You will still be using the negative gearing approach to reduce your income tax and the loan interest is deducted from your tax! If you do proceed, all of the establishment costs, legal fees, independent financial advice, duties etc. are paid by your SMSF, not out of your pocket.
Also, by using your SMSF to fund your investment property the tax on your rental income will be halved. In addition, properties sold by owners aged over 60 years old and above will not be charged of Capital Gains Tax.
How does the SMSF work?
Your SMSF appoints a Security Custodian to purchase investment residential property on its behalf and as security for the loan. The SMSF contributes cash to pay the deposit and to meet legal costs and stamp duty. The SMSF then manages the property in the same way as any other real estate investment. The property is held in trust and the legal title is either transferred to the SMSF when the loan has been repaid or the property may be sold.
The best part about all of this, Super Investment Ideas will help you take control of your financial future for FREE! Call them now and take advantage of this wealth building strategy too. Dial 07 3282 5027 for Brisbane and 08 7071 7222 for Adelaide or log on to [http://buy-investmentproperty.com.au/]
