Buying a Property through a SMSF
Yes, this can be done!
Borrowing through an SMSF
Have you thought of using your SMSF to purchase an investment property? You can. By either using the existing cash available in your SMSF or borrowing as you would as an individual to purchase that investment property or business premises. We can explain the complex process required to borrow through an SMSF including:
- Bare Trust and Trustee
- Which bank to approach to borrow
- We can recommend your legal team
The advantages of borrowing through an SMSF include a CGT tax rate of 10% while working and 0% when retired. Compare that to a potential tax rate of 24% when investing in your own name.
Yes, there is the disadvantage. The funds are locked away until you retire, but this strategy can form a major part of your entire retirement plan!