Using your superannuation to invest in property, typically through a Self-Managed Super Fund (SMSF) has become a popular strategy for Australians seeking to build long-term wealth. While this approach offers significant benefits, it also comes with complex rules and potential pitfalls. Here’s a balanced look at the pros and cons of buying property with your super. If you’re wondering about buying property with super pros and cons, this guide covers everything you need to know.
Pros of Buying Property with Super
1. Tax Benefits
One of the main incentives is the favorable tax treatment. Rental income earned by the SMSF is taxed at a concessional rate of 15%, and capital gains on property held for more than 12 months are taxed at just 10%.
2. Retirement Income Stream
Property can generate steady rental income, which may contribute to your retirement income once you reach preservation age and transition to pension … Read more