With interest rates at record lows, property has become one of the most popular investment options for Australians. Using Super to Buy Investment Properties in Melbourne is also an option that many people include as part of their long-term retirement strategy. But, before you buy a property through your super, there are some important things to consider.
How much money can you put in super per year?
If you’re thinking of purchasing a residential property through your self-managed super fund (SMSF), it is important to understand the rules and costs involved. You must follow specific rules to avoid a breach of SMSF regulations when buying property.
It’s also a good idea to seek professional financial advice before you make any decisions. The wrong move could have serious consequences for your future wealth position. It’s also essential to understand that you cannot use your SMSF to buy a primary residence – you can only purchase an investment property.
Property investment through your SMSF is a great way to grow your wealth, especially when you’re close to retirement. However, you should only invest in property in your SMSF if it suits your current and future wealth goals.
It’s also worth mentioning that purchasing property in your SMSF can be expensive, particularly if you’re borrowing to do so. Lenders Mortgage Insurance can be a significant cost. If you are purchasing an investment property through your SMSF, it’s a good idea to work with a qualified financial planner to ensure that the property meets your investment goals and the structure is sound.