Silverhall has been a big believer in the Central Coast property market for quite some time now. We have done extensive research on the Central Coast, Including the M1 upgrade between the Tuggerah and Doyalson interchanges, job and employment growth, as well as Infrastructure such as the Wyong hospital, Warnervale Town Centre and the development of Australia’s China Theme Park.
Silverhall Research continues to support identified growth areas. Silverhall clients have purchased in multiple development across the Central Coast, all benefiting from the huge amount of infrastructure investment underway; as well as the significant employment growth happening and to continue. There has been some great activity happening in the last 6 months across the Central Coast. Here are some of the key points:
We kicked off our seminar season in Sydney this week. Despite the storm, we had a great turn out – so thank you to those that braved the weather! Take a look at the photos from our seminar at the Hilton and some of the feedback from attendees.
It is never too late or too early in life to start thinking about how best to invest your super. Attending investment property seminars is a great way of acquiring the information you need to know about investing your super in property and whether it is the right option for your circumstances.
The changes to superannuation laws in 2007 and the introduction of self-managed super funds (SMSFs) meant it was now possible to borrow and charge assets with super funds. Not only could you gain control of your own super and stop paying fees to fund managers, with SMSF investment properties came potential rental incomes, capital growth and taxation benefits.
Once established, your SMSF can borrow money from a lender to purchase investment property, residential or commercial. This property will be held in trust for the superfund by a property trustee until the loan has been repaid, after which ownership can be transferred to the SMSF. This protects other assets if the SMSF should the loan default.
There are other conditions for SMSF properties such as who can live in the property.. Costs, such as council rates or repairs, as well as loan repayments are paid by the SMSF. Also, any rents received go to the SMSF and the decision to make improvements or pay out the mortgage early can be made by the SMSF. It is important to get advice to ensure the trust and loan is structured correctly to comply with the legislation and tax implications.
If you’d like to learn more about investing in property with your super, Silverhall runs informative investment property seminars in Sydney. Find out more by visiting their website or contact 1300 662 143
Good old bricks and mortar have always appealed to the Australian investor as a trusted property investment strategy. But as we continue to face an uncertain world economy, now more than ever investors are turning to property investment through their self-managed super funds. Is this the right strategy for you?
What It’ll Cost You
Generally, the purchase of a property with your self-managed super fund (SMSF) takes place in a conventional way. However your SMSF must satisfy the loan requirements of your lender, and in most cases the maximum loan-to-value ratio is around 65-70 per cent of the property value.
As with any normal investment property purchase, all associated purchasing and property costs are paid for by the SMSF. And since the property is ‘beneficially owned’ by the SMSF, it collects all rental proceeds and income.
Tax Benefits
There are major tax concessions available to SMSF-funded property investors. By holding a property in super, rental income attracts only 15 per cent tax (or no tax at all during the pension phase). And if the investor chooses to sell the property after their super switches to the pension phase, no capital gains tax will be payable.
What to Watch Out For
Despite the tax benefit draw card, property investment with an SMSF has its pitfalls, so proceed with caution. Investors must have their trust set up correctly, and there can be complicated issues surrounding the loan structure and compliance with trust and tax guidelines.
If you’d like to learn more about investing in property with your super, Silverhall runs FREE informative investment property seminars in Sydney. Or simply arrange a FREE one-on-one appointment at a suitable time and location of your choice. Find out more by visiting their website or contact 1300 662 143.