Profitable Property Investments via a Self-Managed Super Fund

Investment OpportunitiesThere are many investment opportunities you can explore today. One popular investment is property acquisition which would require a little knowledge, skill and a bit of hard work on your part.

Find Good Property – Every investment that you make should be profitable. The main goal for utilising a self-managed super fund for purchasing and operating a real estate business would be to generate consistent income for your fund, provide for your operation expenses and eventually subsidise your retirement. Procure yourself a property that has the best income generating options via lease and rentals. Take note that it should also have as minimal repairs and maintenance requirements as possible.

Find a Good Lender – Like with any other buy-and-lease projects, chances are, you would need some additional capital to fortify your super fund. This is where the role of the lender becomes essential. As with any other loan, whether they are supplied by a bank or credit union, they come with different interest rates and payment schemes. Shop around to find the best monthly payments and interest fees that can fit your investment requirements.

Follow the Rules – While self-managed super funds can enjoy tax benefits, there are restrictions placed on what kind of acquisitions the loan can be used for. First off, it should only be one kind of asset. Also, it should not be used for anything other than business. Not following these regulations will place a penalty on both the marginal tax rate and the tax levied on the income from the said property, slicing off a huge chunk of your profits.

As long as you follow the above pointers and make a plan to properly and regularly repay the loan using the fund, you will eventually be able to earn from the said business setup. Finally, contact a reliable property investment firm for expert advice and excellent acquisition options. It’s best that you contact professionals to teach you how to do the business properly.