About Buying a Melbourne Property with Your Self-Managed Super Fund
Buying a Melbourne Property with Your Self-Managed Super Fund many Australians rely on their employer’s superannuation to see them through retirement, a growing number of individuals are choosing to set up and manage their own SMSF. Providing the flexibility to invest in a range of assets, including residential and commercial properties, an SMSF can provide select people with the opportunity to achieve their retirement goals. However, SMSFs are highly regulated and require careful consideration and planning. Balancing the benefits of increased control and potential wealth creation with the responsibilities, compliance and complexities associated with SMSFs is essential.
Smart Investing Down Under: A Guide to Securing Melbourne Property with Your Self-Managed Super Fund
Purchasing a Melbourne property with an SMSF requires careful consideration and research. One of the most important considerations is ensuring that the property will be a suitable investment for the fund’s long-term goals. In particular, it’s important to remember that property prices are likely to rise and fall over time. It’s also important to consider the ongoing costs of owning a property, such as council rates, repairs and maintenance, insurance premiums, and so on.
When purchasing a property with an SMSF, it is vital to make sure the trustee of the bare trust is registered with the local authority and that the purchase will be made in the correct name. It’s also necessary to establish a separate legal entity to hold the property, and that this will be owned by the SMSF. This is required to limit the lender’s recourse to other assets within the SMSF in the event of default.