Could anyone refer me to any reading material about the benefits and/or the downside of purchasing property as a superannuation fund – it has been mentioned that there are considerable tax benefits in doing this?
Could anyone refer me to any reading material about the benefits and/or the downside of purchasing property as a superannuation fund – it has been mentioned that there are considerable tax benefits in doing this?
One thing I can think of is that generally u cannot borrow money when you purchase via a superfund, so you will have to put up the full purchase price.
One book I’ve read covers this topic – ‘Anyone Can be a Millionaire’ by Sean O’Reilly. He is an Aussie as well!!
He says that purchasing property via a super fund is not a good idea, as you need 100% cash for purchase, a super fund can not take out a loan.
The example is given that with $200,000 you can buy several properties worth $200,000 each (use the cash as a deposit and getting various loans for each property) Over time they all (hopefully)increas in value, giving you much more worth at the end of the day (retirement) than just one $200,000 house owned by the super fund. Have a read (:
Thanks Terryw, I have the opportunity to withdraw my superfund from my employer to set up my own superfund and was hoping to use that money for a deposit on an investment property but i am not sure of the tax implications and if it is legal or not.But it would be great if it were possible.[]
I don’t think it is possible anymore. You used to be able to get to the money by setting up unit trusts and the like, but the rules ahve been tightened. there is some good info on http://www.chrisbatten.com.au