buy house nj
Using Superannuation To Buy A House
• Wary of using the share market for your super?
• Interested in leveraging a Self-Managed Super Fund for a long-term beneficial asset?
• Think that property presents a solid opportunity for investment?
• Want the very best for your financial security?
• Using superannuation to buy a house could be the very solution you’ve been looking for!
If you have not considered using superannuation to buy a house, you could be missing out on an investment that can guarantee long-term growth and a valuable source for your retirement. Changes to superannuation regulations have allowed people to use their Self-Managed Super Funds (SMSFs) to borrow to invest in assets such as property. You can set up an SMSF and leverage it to grow your assets and successfully set yourself up for the ultimate goal of a comfortable, early retirement.
Numerous Australians are seeing the benefits of purchasing property as a long-term investment, but what they don’t know is that there are greater advantages to purchasing these properties through an SMSF. Not only can you leverage your super to borrow for this asset, banks and lenders are more likely to give you more money for an investment of this magnitude. Using superannuation to buy a house can give you borrowing power of up to 70 and 80 per cent of the total amount. Better still, properties purchased inside your SMSF only incur a tax penalty of 15 per cent. Properties purchased outside of your SMSF can incur up to 46.5 per cent in taxes so the benefits of such an investment are obvious.
When using superannuation to buy a house, your SMSF is responsible for all costs of the property including deposit, up-front costs, and ongoing maintenance, so there are no out-of-pocket expenses. These costs come out of your SMSF and payments such as rent go in. The property operates in this way until it becomes self funding and cash flow positive. Should you make the decision to sell your property when you reach pension phase, you incur absolutely no Capital Gains Tax.
If you have other assets inside your SMSF, they are protected from creditors and insolvency. Your lender has legal recourse only concerning the property for which they have loaned you funds – they have no legal recourse over your other assets.
If you don’t have sufficient funds to buy a house outright with your SMSF, seek expert external advice about installment warrants and to guide you through the investment process safely so you can successfully set yourself up for retirement. If you are serious about your financial future and its stability, you should think about using superannuation to buy a house. Don’t let someone else handle your funds; actively engage with your super fund today and determine your own financial future.
If you are interested in using superannuation to buy a house, you should speak to Super Alchemy. Super Alchemy can advise you on the best course of action for your super needs and help you boost your retirement assets using superannuation to buy a house.
