How investing in property through SMSF can fast track wealth creations?

Owning an investment property through an SMSF (Self-Managed Super Fund) with rental income coming in each month is a clever and a tax effective way to generate a consistent, yet passive, income flow & fast-track substantial wealth creation for your comfortable retirement

Property investment is a tried-and-true investment option that’s historically proven to be more stable and more predictable than many other investments in Australia. Overall property values rarely fluctuate like the stock market can, and most often increase, so you’ll likely benefit from a good return on your investment and stable cash flow from incoming rent payments.

There are many reasons why investing in property continues to be a popular choice and is often seen as one of the best ways to invest money in Australia.

Setting up a SMSF gives you increased transparency, flexibility, and control of invest decision meaning you can choose where and how you invest. There are significant tax concessions when you buy a property in your SMSF:

• A tax favorable and heaven regime than ‘ordinary’ investment in your personal name.
• Rental income is taxed at maximum rate of 15% within your SMSF and not at your personal tax rate, which could be up to 45% that a ‘regular’ investor could be paying.
• All property running expenses, agent management fee, depreciation, loan interest, council rate etc. can be claimed, which can reduce the 15% tax rate even lower or to zero (negative or loss) in some circumstances.
• A tax loss in one year can be carried forward to the next year to reduce the tax payable in that year.
• Some States allow land tax exemption threshold for properties held in SMSF name. Depending on property, a land tax can be $5000 or more per year.
• The capital gains tax on the sale of property in accumulation phase is a maximum of 10% (provided the property had been bought at 12 months prior).
• There is no income tax to pay on rent once fund is in pension mode.
• There are no capital gains to pay if the property is sold once your fund is pension mode.