Self Managed Super Fund (SMFS)

According to the latest data from the Australian Taxation Office (ATO), more than 2.2 million Australians are property investors, constituting 20% of the entire population. This upward trajectory in property investment shows no signs of waning, providing statistical evidence that a substantial portion of Australians prioritise property investments.

For many Australians, Self-Managed Super Fund (SMSF) property investment has become the favored strategy over conventional property investment. But why is this the case?

The answer is straightforward: SMSF property investment offers attractive rental returns within the superannuation structure, effectively bolstering an individual's superannuation balance for retirement.

According to the ATO, there are currently over 600,000 SMSFs collectively investing over $40 billion in residential real estate. Still curious about the rationale behind this preference for SMSF property investment? 

Tax Advantages: SMSF property investors enjoy substantial tax benefits, as they are subject to a mere 15% income tax on SMSF properties, in stark contrast to non-SMSF properties that may be burdened with taxes of up to 45%.
 

Increased Buying Power: The flexibility of SMSFs, which can accommodate up to six members, means that capital can be pooled together, effectively amplifying the purchasing power of the SMSF.

Reduced Capital Gains Tax: Investment properties held within an SMSF also benefit from a reduced Capital Gains Tax rate of only 10% for properties held for more than 12 months.

Direct Ownership and Control: SMSFs are the sole superannuation structure that permits investors to directly own property and have direct control over their investment.

Currently, SMSF property investors are limited to specific property types, including established properties, townhouses, apartments, and commercial real estate. However, through One Contract Property, SMSF property investors can leverage their superannuation funds to invest in new houses and land developments across Australia. 

These new property types encompass houses, dual-living setups, duplexes, co-living arrangements, and those catering to the National Disability Insurance Scheme (NDIS).

Unlock the possibilities of SMSF property investment today; call the easiloans team for further information.

Disclaimer: easiloans does not provide financial advice and encourage you to seek a licensed Financial Planner or your Accountant for formal financial advice.