What do I need to know?
There is a lot of information out there regarding SMSFs, what you should be doing with them, who should have one, how much money you need to start one etc etc.
I feel that the main lure to SMSF is the control over the investments alternatively I think the main hesitation is the fear of having to pick those investments given the current markets.
With the introduction of borrowing it has now allowed people to start their own superfund and invest it in a property.
Property is the bricks and mortar. It is what the rich hold their wealth in as well as the preferred investment of mum and dad investors.
The fact is that most investors dont get to one investment property let alone get to number two.
The reason for this is funds and fear.
You know those funds in your superfund that you see getting battered, well you now have the chance to take those funds and put them into an investment property that is held in your SMSF.
The funds in your SMSF are used as the deposit and the bank will lend you the rest in the form of a non-recourse loan. This means that the bank can only take that asset as security for the debt. This eliminates the fear of risking it all.
The BEST part is that this property can be sold TAX FREE.
To recap.
You get an investment property effectively costing you nothing as your 9% super contribution and rental income pays off this property, you get capital growth over the years which increases your asset and then once you reach pension phase you can sell the property TAX FREE.
