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GROW YOUR SUPER WITH PROPERTY
What are the benefits?
This investment strategy offers various benefits.
The advantages are:
- invest in real estate with limited funds available
- accelerate the build up of superannuation funds for later use in retirement
- direct property investments for super by using an UUT
- direct property investment for personal investment by using an UUT
- up to four individuals can channel and accumulate superannuation contributions into a joint SMSF to build up cash flow into the fund (conditions apply)
- positive cash flow can be used to buy more units in the investment property at the same time reducing your investment loan faster
- investors gain leverage of growth and income through borrowing funds for investment in the trust
- earnings are fully distributed by the UUT to security holders in proportion of their holdings
- earnings are concessionally taxed in the SMSF
- interest for borrowed funds can be offset against earnings for the personal investor
- all the usual tax deductions from property investment are available to both the personal investor and the SMSF
- no capital gains tax if the investment property is sold in pension phase through the SMSF
The presented strategy is one of many strategies available and has also some disadvantages that should not be discounted:
- direct property investment is illiquid and cannot be sold easily
- there may be some capital gains tax implications when the UUT purchases ongoing units from the personal investor
- insurance and risk management are additional costs to protect your investment and superannuation
- leverage of earnings and growth can also magnify losses even if they are temporary
- inflated prices for the investment property can delay or ruin the benefits
- this is not suitable for people looking for short term liquid gains
Property investment through an UUT is a buy and hold strategy and works best over a long-term investment horizon. At Equity Resource we can show you how to realize these benefits and how you can control possible disadvantages. We have a service solution that provides exactly that, creating peace of mind for you now and in the future.
- Grow your Super
- How does it work?
- Step by step
- What are the benefits?
- How to get started?
Warning
No investment advice is provided to you. This presentation is not designed
for the purpose of providing personal financial or investment advice.
Information provided does not take into account your particular investment
objectives, financial situation or investment needs. You should assess whether
the information in this presentation is appropriate to your particular
investment objectives, financial situation and investment needs. You should do
this before making an investment decision on the basis of the information in
this presentation.
The concept and details presented on this page formulate a possible strategy
only and require the involvement of various professional experts in their
fields. You should seek the assistance of the appropriate experts as
explained above.
Equity Resource Financial Planning always consider alternative strategies as
part of their financial planning advice which we are happy to provide to you on
an individual basis. Equity Resource Financial Planning is an Authorised
Representative of
PATRON Financial Advice AFSL No 307379.
Strategy today.
Freedom tomorrow
