How do I purchase a residential investment property via my SMSF?
OzInvest SMSF’s structured approach
If you are interested in using your superannuation fund to buy a long-term residential investment property, you may be unsure of where to start. Since 2007, Australians have been allowed to borrow money using their superannuation to purchase residential property via self-managed super funds (SMSFs).
But as this legislation restricts property purchases to projects with a single settlement payment when the build is completed - such as a unit apartment or townhouse with little or no land attached - investors have not traditionally viewed these investments as attractive long-term options.
This is where OzInvest SMSF can help. We offer one of Australia’s only residential house and land packages available through your self-managed super fund.
Any Australian who has accumulated a certain amount of superannuation benefits and meets specified criteria can fund a residential property purchase using money borrowed from a super fund.
OzInvest SMSF can help you determine whether you meet the specified conditions and can assist you with every stage of your SMSF property purchase.
First, your SMSF borrows funds to purchase the property and a separate trust - usually known as a Bare or Security Trust - is established to hold legal ownership of the property on your SMSF’s behalf.
Then, your self-managed superannuation fund withdraws the loan, using the cash to meet legal costs and pay the deposit and stamp duty.
Once construction of the property is finished, an on-completion valuation of your new investment property is carried out by your bank, which then releases the rest of the funds needed to purchase the house and land investment property package.
Your SMSF property investment is then managed by OzInvest SMSF, with all income going into and expenses withdrawn from your self-managed superannuation fund.
At Ozinvest SMSF, we are committed to helping you create a successful long-term self-managed super property investment. Our team carefully researches the best locations for rental property to secure the future capital growth of your investment.
Our developments have been researched by independent firm SQM Research, which compiles an in-depth analysis of locations, surrounding infrastructure and a macro property market overview.
This is used to assist with the research analysis of your self-managed super property investment, ensuring the property you choose is a great fit for you.
OzInvest SMSF’s exclusive Residential Investment House and Land Packages are available to purchase through your self-managed superannuation fund. We consistently monitor the markets and use a strict set of criteria to evaluate all potential developments - making sure your self-managed super property investment yields the highest return possible.
Best of all, the property can be leased under the normal terms and conditions of a tenancy as set out by your SMSF - meaning it is also eligible for OzInvest’s 10 Year Leaseback Guarantee.
We are the only property investment company in Australia to offer this innovative type of leaseback system, offering you a safe and easy way to build wealth and plan for your future.
OzInvest can assist you with every stage of your SMSF property investment - get in touch with us today to discuss your options.
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Click here for a little more from Stuart Forsyth the Assistant Commissioner for Superannuation on Self Managed Super Funds.