Setting up a fund is easy with the assistance of the Australian government. Primarily for the retirement benefit of its citizens, super funds are fast becoming one of the most reliable sources of investment funds to date.
While using the fund for property renovation and other similar expenditures is illegal, formal investments are acceptable for the benefit of the fund owners’ benefit.
Protection under the law
Investing in property with self managed super funds is reliable since there are regulations in place that protect these. This means that they cannot simply be assigned, used or forfeited for the benefit of disinterested third parties. The owners or the people for whose benefit the fund exists are the only ones who can make use of the proceeds to maximise their potential.
Your own terms: enjoy full control
Together with the other owners, you enjoy full control over your funds and you will be able to decide as a group when to invest the proceeds and where to invest them. You enjoy more autonomy over your investments.
Concessional tax rates
The best thing about this option is that you have the privilege of enjoying concessional tax rates. The taxes charged herein are considerably lower and the rules that apply are relatively less strict.
A word of caution, however; as with other investment schemes, self-managed super funds have their risks. In wanting to earn more money in the least amount of time, some investors trust their instincts too much. Since these funds involve the money of different individuals, it is essential to study the pros and cons of every situation, so that you do not gamble away your wealth and your retirement.
Do not hesitate to seek the advice of a financial adviser that specialises in self managed super funds property investment. It is better to listen to an experienced professional to protect your interests and your future.