Introduction to SMSF Property Investing

While traditional investments like stocks and bonds are common in Self-Managed Superannuation Funds (SMSFs), diversifying your portfolio is key. 

SMSF property investing offers an avenue to utilise retirement savings for income-generating real estate. 

Finconnex specialises in guiding SMSF property investments, providing a simple strategy to leverage SMSF funds for real estate development.

Overcoming Limitations

Current SMSF investors face restrictions on properties with two-part contracts. Finconnex addresses this challenge by initiating a two-part contract with the builder, allowing investors to engage in a one-part contract. This innovative approach facilitates the purchase of new home and land packages within the superannuation framework.

STEP 1: Selection

Choose from a range of house and land packages available across Australia.

STEP 2: Initiation

The SMSF enters a single-part contract with Supavest and a 35% deposit is paid. Supavest secures the land, oversees construction, and manages payments to the builder.

STEP 3: Completition

Upon finishing, the SMSF settles the remaining 65% balance. The property is transferred, completing the sale, and the SMSF gains ownership of a new investment property within its super.

Exclusive 15% Income Tax Rate for SMSF Investment Properties
SMSF property investors enjoy a significant benefit when it comes to income tax. They pay a mere 15% income tax, while non-SMSF investments typically incur around 45% in income tax.

Favourable 10% Capital Gains Tax for SMSF Investment Properties
The topic of capital gains tax is often a hot discussion during tax season. However, for SMSF property investors, there’s a silver lining. If they hold a property for over 12 months, they are subject to a reduced 10% capital gains tax.

Enjoy 100% Tax-Free Rental Income and Capital Gains in Retirement
When an investor retires, they can reap the rewards of their SMSF property investment by receiving a 100% tax exemption on rental income and capital gains.

Tax Deductibility of Interest on SMSF Investment Property Loans
Unlike other loans, interest on loans for SMSF investment properties is fully tax-deductible. This means that opting for this particular loan type is advantageous, regardless of the interest accrued over time.

Looking to begin your SMSF property investment journey? Get in touch with the Finconnex team today!

Disclaimer: Finconnex does not provide financial advice and recommends consulting a licensed Financial Planner for all financial advisory needs.

GET IN TOUCH WITH OUR TEAM TODAY!