Benefits of the self-managed super fund property investment
Added: (Wed Mar 04 2015)
Pressbox (Press Release) -
First, let us define what is self managed super fund or SMSF. It is another type of superannuation fund, but can offer great advantage for members to manage their retirement savings over any other form of superannuation fund like the retail super funds. Through SMSF the member can choose wider scope of investment opportunity and has complete control of the chosen investment project. Furthermore, the member has the capacity to pay retirement benefits like annuaties or pension right from the fund. What's more, great about SMSF or the self managed super fund because you have the advantage to manipulate your retirement savings you can make your own investment plan.
You've worked all your life and you know how much time you invest in your company and in return you were able to save enough money to buy a property of your own. In most cases, before a person retires, he always consider investing his savings into something really beneficial not only for himself, but for his family as well like property buying or business sale investment. It's not really wrong planning ahead where to put your savings before you retire, after all, everybody is doing it why can't you? Remember, you're not living alone in this world; in fact you have your wife and kids whose strongly depending on you. So, it's pretty obvious that it's your responsibility as the head of the family to make sure that your family is stable enough before you get old and die. This might be a horrible thing to think about, but this is reality and you need to take it seriously.
To give you a heads up, here are two good benefits when you buy a property through self managed super fund property investment;
The opportunity to save you from tax payments - When you acquire a property through self managed super fund property investment until you retire and start collecting funds out of your pension plan, if ever the fund sells your property, the entire property settlement agreement will be exempted from capital gains tax. And if any profit you fund receives while collecting a pension is also considered tax-free. On the other hand, before you begin accumulating pension from your SMSF, any profit from your rental will have an income tax at 15% max and if the fund was able to trade the property after keeping it within a year, your fund will only charge capital gains tax upon selling the property up to 10%.
Secured Asset - property or any asset under any superannuation fund projects like the self managed super fund property is protected from possible bankruptcy of the creditors. However, before you invest your SMSF in any property buying transaction, you must realize that it must be connected to the SMSF investment plan and your fund is sufficient enough to pay all the expenses in a longer term.
For more secure self managed super fund property investment plan, visit http://dllm.com.au/