Published date (29/04/24)
Leveraging your superannuation to GROW your property portfolio
In Australia, you can use your superannuation to purchase property through a self-managed superannuation fund (SMSF). Here's a simple explanation of how it works:
Start an SMSF: You can create a special type of superannuation fund called a self-managed superannuation fund (SMSF). This is like your own personal retirement savings account that you manage yourself, along with a few other people if you want.
Save Money: You and others can put money into this special account, just like you would with any other superannuation fund. You can save money from your paycheck, put in extra money if you want, or move money from another super fund you might have.
Find a Property: When you've saved up enough money in your SMSF, you can think about buying a property with it. This could be a house, apartment, shop, or office space – something you think will make money over time.
Buy the Property: You use the money in your SMSF to buy the property. If you don't have enough money saved, you can also borrow some extra money, but there are special rules about how you can do this.
Take Care of the Property: Now that you own the property through your SMSF, you have to look after it. This means making sure it's in good condition, paying for things like repairs and insurance, and maybe even finding someone to rent it out if it's a house or shop.
Follow the Rules: There are some important rules you need to follow when using your SMSF to buy property. For example, you can't use the property for yourself – it has to be an investment for your retirement. There are also rules about how you manage the property and how you report things to the government.
Use it for Retirement: While the property is making money, it's all going into your SMSF. Then, when you're ready to retire, you can use the money from the property, along with any other money you've saved in your SMSF, to help you enjoy your retirement.
It's a good idea to talk to someone who knows about SMSFs and property before you decide to do this, just to make sure it's the right thing for you and that you understand all the rules.
