“Make sure your property is in a growth area that can be easily rented, make sure the rent covers all the expenses of keeping the property, and have all the insurance in place – be it life, income, landlord and home insurance, they should all be taken into account. Your financial advisor would be able to help you with these. ”
There are other costs to consider as well, such as pre-establishment fees for an SMSF plus annual tax reporting and audit compliance, but Ameer says the long-term benefits based on the historical capital gains should outweigh these costs.
Ameer says that if investors already have an SMSF and have not yet purchased property in their SMSF, DDP Property and its partner financial planners and accountants can help create additional structures to buy an investment house.
Residential real estate also gives investors exposure to an asset class that they understand and trust – and enables them to avoid the volatility of other asset classes such as Equities. And by using your SMSF, you can access an initial deposit that you otherwise would not have had access to. ”
DDP Property can also help with a cashback for investors who buy new properties through DDP.
“Commissions, marketing fees, referral fees can be a huge obstacle to overcome,” he says. “For example, if you buy a brand new house and land package for $ 500,000, over $ 25,000 will pay those fees.”
DDP Property refunds some of these fees, it receives cash back to the buyer.
The buyer instead pays a one-time fee to DDP Property to guide buyers through the process of buying a property.
“The cashback can help after your property purchase if you plow it back into your SMSF,” he says.
“Then it can be used for future investments in real estate, equities or any other type of eligible investment class that complies with the SMSF.”
Ameer reiterates that it is important to get financial advice on whether buying a property through an SMSF is the right decision for your circumstances.
The nation’s highest self-governing body, the SMSF Association, says that before any investment decision is made by SMSF trustees, it is imperative — and a legal requirement — that trustees consider the actual investment strategy for their SMSF and investor relationship.
“The strategy should describe how much exposure the fund should have for the real estate market, the form of exposure, and how appropriate it is in relation to the SMSF members,” says the SMSF association.
“It is important that managers understand that this is not a set and forget problem. In fact, part of the annual commitments of an SMSF’s auditors is that they must be satisfied that the SMSF has an investment strategy in place and that its investments are in line with this strategy throughout the year. ”
If you want to buy a property via SMSF, visit DDP property website and send us a message to ensure a guaranteed cashback. Terms and conditions apply. Learn more.