Fast Track Your Super With This High Yield Property Strategy
Self managed super funds property investment is gaining popularity as a lucrative way to plan for retirement. While there are clear financial benefits, buying a property with SMSF requires mindful consideration and the guidance of a knowledgeable investment team with an in-depth knowledge of the Australian market. That’s where The High Yield Property Club comes in. Our Rooming Houses are the ideal choice for those seeking a high ROI with the backing of a proven investment company with a keen understanding of Australia’s competitive real estate market. Let’s further explore the concept of self managed super funds and how you can use them to purchase a Rooming House that provides financial stability for retirement.
Learn more about earning 8%+ on your investment with our exclusive FREE Rooming House Masterclass.
What is a Self Managed Super Fund?
Self managed super funds, or SMSF are savings accounts created specifically for retirement. Unlike traditional superannuation funds, with an SMSF, you manage your investment yourself. While there are many tax benefits to skipping the provider and overseeing your account, it takes considerable energy to ensure your money is cared for properly. One way to grow your super fund while safeguarding it is to purchase an investment property. While buying a property with super may not be the right choice for everyone, savvy investors know it’s one of the best ways to protect and grow your funds.
Is Using Super to Buy Investment Property Legal?
Using super to invest in property is legal and increasingly popular with Australians. You can use your Super to purchase a singular asset or multiple assets with identical market values. One of the most common methods of capitalising on this opportunity is through Limited Recourse Borrowing Arrangements. With LRBAs, the SMSF trustee receives beneficial interest from their purchased asset, while legal ownership remains on trust. It is important to note that while this method protects your super fund if the loan defaults, there are restrictions for fund recovery. At the High Yield Property Club, our knowledgeable team have multiple solutions for overcoming this roadblock, so contact us today to see how we can help you get a rooming house with your self managed super fund.
How to Buy Investment Property with Super Funds
Before you buy investment property with SMSF, there are rules you must keep in mind. You can invest super in property that you would own personally, whether business or residential, but it must pass the “sole purpose test.” The sole purpose test states that the property must only offer retirement benefits for the SMSF member. You cannot use it for personal reasons or rent your investment to family. Further, you can’t purchase the property from a relative. Additional rules about how to buy property with Super include:
- “Market Value” Rule – All investment properties purchased with SMSF must receive a current market value valuation, and all leases must align with the market value for the property type.
- Asset Name – You must put your investment into the SMSF name, not your own.
- Borrowing – If you haven’t saved enough funds to buy property with super outright, you can use the aforementioned LRBA. This option allows you to borrow the remaining balance, and the property remains in a trust until you repay the loan.
- Property Acquisition Fees – Your super funds must cover all purchasing expenses related to your investment property. The High Yield Property Club can walk you through all financial regulations related to your Rooming House investment, taking the guesswork out of the process.
Capitalise on your super fund by earning a guaranteed 8%+ ROI with high-demand Rooming Houses. See how you can enjoy financial freedom with The High Yield Property Club here.
Can I Use My Super Funds for Multiple Asset Acquisitions?
A common question among those interested in using their super funds for property investment is whether they can use them to acquire a house and land? Currently, superannuation laws only allow you to borrow funds to use on a single asset or one part contract. That means you can’t purchase a land and house package simultaneously when the loan contract is in two parts: one for construction and one for land. Fortunately, the experts at The High Yield Property Club have multiple solutions for investors regarding this law. Our team can help you use your SMSF to legally purchase a quality Rooming House and begin saving for retirement with an unprecedented 8%+ return.
The Benefits of Buying Property with Super Funds
When you invest superannuation in property, there are numerous benefits you receive. They include:
- Asset Protection and Growth – This lets you turn stagnant superannuation savings into a lucrative property investment that grows in value over time.
- Tax Advantages – Unlike traditional personal tax rates, a property purchased with SMSFs is only taxed at 15%. Receiving such a large tax break equals considerable savings over time. Additionally, when using your SMSF to purchase a Rooming House through The High Yield Property Club, you will generate a massive 8%+ return on investment. That means you not only save on out-of-pocket tax expenses but also enjoy $90K+ per annum toward your retirement!
- Diversification – At The High Yield Property Club, our experience in the real estate industry means we understand the importance of diversifying your portfolio. Whether you’re interested in purchasing multiple properties or finding new ways to grow your net worth, Rooming Houses helps create a high-performing portfolio you can feel proud of. Buying investment properties with super is also an excellent way to protect your funds when you heavily invest your superannuation fund in bonds and shares.
When Purchasing a Property with Your SMSF Doesn’t Work
While there are countless benefits to using your super fund to buy an investment property, there can be drawbacks. These include:
- Limited Cash Flow – Using your superfunds on a property that fails to deliver adequate cash flow can cause problems down the line, especially when you reach your pension phase. Ensuring your investment works hard for you is crucial. Partnering with The High Yield Property Club is the only way to ensure you receive 8%+ return and financial peace of mind.
- Ongoing Expenditures – SMSFs incur their own set-up costs and financial obligations. Investing in a property renters love will ensure you receive the income necessary to cover all fees.
- Complexity – Using Super to purchase property is a complex process, so having a professional team guiding you is essential. When you partner with The High Yield Property Club, we walk with you every step of the way, advising you on the best way to capitalise on your investment.
Get the most out of your self managed super fund with The High Yield Property Club. Our Rooming Houses generate a guaranteed 8%+ ROI, achieving $90K per annum per property. Learn how you can enjoy financial freedom in retirement with our FREE Property Strategy Masterclass or contacting our friendly team at 1800 10 100 and start growing your net worth today!