The long term economic crises that have eaten away at people's savings have made real estate seem much more valuable than before as a tool for planning for a comfortable retirement.
As a matter of fact, an increasing number of people are investing in property through their pension funds. It is not always easy to invest in property using retirement money accumulated since the associated costs are very high.
However, there are many changes in legislation that simplifies the process of how to buy a property with super funds. You can easily get the best SMSF compliance auditors.
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Most people prefer to use an SMSF (self-managed super funds) to invest in property and planning their retirement as it allows them a simple way to:
• Save on income tax
• Eliminating pay capital gains tax in the case of investment property
Many small business owners also use this investment method to get the maximum benefit from owning property. They use their pension fund to buy commercial property to run their business from and then rent the property for business, thereby reducing their operating costs.
It is important to remember, however, that the rents should be in accordance with the level in the market at that time.
When the residential property purchased by the SMSF, guardians or other members of the fund are not allowed to stay in the property. This also applies to property that had been bought as a holiday home. There are strict penalties for this.