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Top Reasons You Should Buy SMSF Investment Property

  • Reading time:5 mins read

 

After Covid-19 hit us hard, many people lost money through their superannuation this past year and are frustrated with the roller coaster ride of their funds, managed by other people – with no recourse or liability for loses.

Investing has become more of an ‘adapt or die’ decision. What we have seen in the past year is how governments around the world are depleting the rights and freedoms of people in every aspect of their lives, dictating to us – to do as dictated, or accept the consequences.

Governments are showing that we have no say in how things are done, as bureaucrats create laws and orders that have not seen the light of day for decades and pass an extraordinary number of bills that most of us are oblivious to, in how detrimental they are to our future and survival.

However, many real estate investors have dodged a bullet and adapted to the most extensive economic changes that are currently occurring– and survived by investing in property.

There’s something different about these investors and their personalised investor strategy. Despite being slapped around by the stock market slump, crypto-currencies and other new and unproven investment offerings with profits earned over decades fading away, investors have found relief in the property market which has helped them regulate their gearing, finances, and taxes.

Many investors have learnt that taking control of their retirement funds is taking responsibility for their own financial life. Escaping the trap of depending on the government that keep changing the rules of our superannuation funds without being consulted when not all of these changes is for our benefit.

People’s popular thinking is what governments prey on to control people. Using the media and propaganda machine to march on telling us misleading and controlled information, while looking after the interest of the owners of the financial system.

When we adopt the status quo and believe that things will remain constant is when we lose sight of what is really going on with our financial future.

We are all part of a financial system that is there to benefit from our hard work. We have laws that help us save on one hand and also laws that prevent us from using our own saved money until the governments decides.

When you consider that up to 50% of all our hard-earned money goes in tax, disguised as income tax, land tax, capital gains tax, petrol tax, council rates, water rates, and a multitude of other taxes that we don’t even realise exist.

Approximately 30% goes to banks so we realise that we must understand these two financial haemorrhage institutions to be able to truly know why we are in the hamster wheel that never goes anywhere.

How we can best protect our savings from the government and them forever changing the goal post policies, is to take control of our retirement funds and looking for options to invest directly in assets that we want to invest in, like real estate.

One of the many positives of using superannuation to invest in property is that there are conditions mandated by law, that the property invested in or purchased must be cash flow positive from day one.

There are strict regulations that give people comfort that their superannuation is performing like annual reporting to the government, and audits. Ultimately the financial planning company that signs for the funds to go into a real estate investment has a large level of responsibility to make sure we don’t get into trouble.

SMSF Property Investment experts that consult for the Landmark’s clients can advise you and assist with a cash flow analysis to match the client’s specific situation when considering property options that will fit their budgets using superannuation.

Why would you invest in real estate using superannuation? We have created a list of benefits for you on this great investment strategy.

 

Choice of investment

The best investors have a diversified portfolio and at Landmark, our opinion is that taking control of your Superannuation and retirement money by investing in property is taking of your life. Don’t leave your hard-earned money in the hands of people you don’t know, that are indemnified of any liability for your loss with no transparency or accountability, when you have the options to choose to take direct control of your financial future.

 

Safe and secure investment

Super contributions and rental income from an investment property are used to pay off the SMSF loan. The rental income can even be paid back into the SMSF by your own small business when buying a property under an SMSF then leasing it back to the business.

 

Tax Benefits

Superannuation is generally known as a low tax environment. With SMSFs you can take advantage of tax rules that allow you to pay low to zero tax on rental income and capital gains at retirement.

 

Conclusion

Are you looking for a certified professional to help you set up your SMSF to invest in assets you want and understand? We have connected hundreds of investors with SMSF professionals who get it done right. Get started by booking a 30-min consultation about the process, and the latest property options available for investment.