One of the most common questions asked is “Should I buy my property in super?”
This week watch as Ken Raiss and I discuss some of the benefits of setting up an SMSF.
Some of the benefits of setting up an SMSF could include:
- Increased transparency and control. You’re in control of your SMSFs meaning you can chose where and how you invest
- The cost of administration could be reduced using an SMSF
- You can increase the size of your nest egg through leverage
- You can purchase residential property with debt in your SMSF.
- You can borrow to purchase your business premises.
- An SMSF allows a trustee to consolidate the Super assets of up to four members(usually family members or business partners)
- SMSFs can provide flexibility with more investment options.
- Tax Effectiveness:Like all super funds, SMSFs benefit from concessional tax rates ranging from 0- 15% rather than your marginal tax rate. And the income to you may be tax free when in pension phase
- Concessional Superannuation Contributions: Extra contributions from either your employer or you are seen as income to the Super Fund and therefore taxed at 15% but can be 30% depending on the contributor’s income level.
- Asset protection: A property owned by your SMSF would not be available to creditors if the purchase was in the ordinary course of your investment life and sufficient time had passed between the purchase and your insolvency.
Here’s something you could do now!
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Whether you are a business owner, a professional or a high-income earner we provide you with an individually tailored solution integrating the core disciplines of taxation, superannuation and property investment interwoven with finance, asset protection, succession and estate planning, personal risk insurances and philanthropy.
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This article is general information only and is intended as educational material. Metropole Wealth Advisory nor its associated or related entitles, directors, officers or employees intend this material to be advice either actual or implied. You should not act on any of the above without first seeking specific advice taking into account your circumstances and objectives.
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