Property Investment through an SMSF: Is It a Great Idea?

Guaranteed investment with Sentinel Property Group For the older generation, retirement is only a couple of years away. Meanwhile, the younger generation still has a few decades to go. No matter how far away from retirement you are, however, you can already start preparing for it now. There are various ways to do so, and one of them is to invest in a self-managed superannuation fund (SMSF) that enables property investment in the future.

You may already have heard about SMSF investment property from firms like Sentinel Property Group. This guideline will help you decide on whether such a venture is suitable for you.

Is It the Path for You?

Before anything else, ask yourself if property investment is right for you. Are you, for instance, planning to keep the purchased property for a long time? If you are, then this investment might be for you. Even if the market temporarily takes a dive, you will still be protected.

How Much Will Your Tax Be?

You will usually pay only 15% for rental income tax and 10% for capital gains tax if you have owned the property for more than a year. You can further reduce the property tax depending on your situation. Once you retire and draw a pension from your SMSF, you may even end up paying 0% tax.

Can You Use a Commercial Property?

Now, you can choose to invest in commercial properties rather than residential ones. If you would prefer to secure a business property instead of renting it, you can do so with SMSF. You might need to show proof of market rental rates to the auditor, though.

An SMSF property investment is a great way to diversify your portfolio and shield you from possible losses. Get in touch with a trusted property investment firm to help you plan it out.