The recent under-performance from super funds and the desire for Australians to take control of their retirement funding has led to a rapid increase in the number of self-managed super funds. A large portion of these have opted for an investment property/s.
What can make this a plausible investment strategy is the fact that the deposit for the property is taken from your existing super balance (or balances if multiple parties roll their super into a SMSF) and the rent from the property, as well as compulsory employer contributions, are able to service the property expenses and generate an annual cash flow surplus
A number of lenders offer interest only loans, with an attached offset account, where excess funds will build up and begin to offset the loan (that has been taken out to fund the property purchase). This should mean that the investment property never takes a dollar from the owner’s disposable income and can provide an income stream once the loan is offset and the funds can be drawn on during a transition to retirement.
Perceptive Property Pty Ltd is affiliated with qualified financial planners that are able to show in detail how am investment property could work for you in inside a SMSF.
We would be happy to hear from you if you would like to know more about this strategy.