I’ve had lots of feedback following my last blog on the government’s decision NOT to ban SMSFs from borrowing to buy property through Limited Recourse Borrowing Arrangements.
For many people it still seems to be a very confusing topic and one that some may be a little wary of pursuing.
Let me be clear: setting up a Self-Managed Super Fund is not for everyone. However, there are a number of significant benefits that you may not be aware of.
SMSFs are an increasingly popular option for many people. Just take a look at the numbers: the SMSF sector is the largest super segment in Australia with 556,000 funds with assets totalling $589.9 billion and it continues to grow steadily.*
Some of the reasons that they have become so popular include:
- You have complete control over your retirement portfolio
- You have increased investment choice and flexibility
- You can potentially purchase an investment property leveraging your super fund
- You can manage or eliminate Capital Gains Tax
- You can pool your superannuation assets with a partner or family
However, managing your own super can also present a few challenges so it’s important to get the right advice before you commit to making the switch.
Also if you already have a SMSF and you have considered purchasing property with your super, time may be running out to take full advantage of the potential benefits offered under the existing borrowing arrangements available to a SMSF.
If you’ve considered a Self-Managed Super Fund but haven’t yet taken the next step to fully evaluate it or if you already have one but you’re not sure if you’re taking full advantage of it, join me for my free webinar on Thursday 26th November where I’ll run through the pros and cons of a SMSF and explore the options for investing through your super fund.
I have said many times over the last couple of years that lending and investing, particularly in property within a SMSF may become more difficult due to the sheer number of people taking advantage of the SMSF gearing opportunities.
If it’s something you have considered but not yet fully explored, now is the time to do something about it!
Come along to my webinar and I’ll also give you a free eBook ‘The Pros and Cons Of Investing Through Your Self-Managed Super Fund’. Alternatively give me a call or register for a free 30 minute consultation.
* APRA June 2015 Quarterly Superannuation Performance
The advice in this post is general in nature. Please ensure you consult an appropriately qualified advisor to get advice specific to your personal circumstances.