4 Simple Steps to Start Investing in Property Using a SMSF
It is possible to use a SMSF to buy investment properties. This has become an increasingly popular choice for Australians in recent years with the strong performance of real estate prices and low interest rates. It is even possible for a self-managed fund to borrow to purchase a single property. Here is an outline of the basic steps for property investing using a SMSF.
Do you have enough Super for property?
The first step when considering property investment with your SMSF is how much money you have. Buying either residential or commercial property in Australia can be expensive. Using your Super balance might give you access to the property market where you otherwise could not, but you need to know how much money you will require. Contact us to learn more.
Establish your SMSF
Once you have determined you have enough money in Super, and you’ve decided to invest in the property market, you need to set up a SMSF. It is important that you have the legal framework set up before you start entering into contracts and making offers. Selfmade can help you quickly setup an SMSF and any other legal and compliance tasks required so that you can buy a property inside your SMSF.
Are you borrowing? If yes, setup a Bare Trust
If you need to borrow money to purchase your new investment property, you will need to set up an additional legal entity called a bare trust (or holding trust) as well as a bare trustee company. This is a requirement of the lenders when providing loans to SMSF’s. Selfmade is able to quickly and simply set up the Bare Trust and other compliance tasks so that you have everything in place.
Access from anywhere
Selfmade is super technology that puts you in control, with everything you need to run your SMSF from anywhere – 24 hours a day, 7 days a week. Better yet, it’s all available in the palm of your hand. With Selfmade, you have super you can see.