If you have made the decision, or are considering purchasing property inside an SMSF, we encourage you to think about the following statement;
“This is my hard earned retirement funds from the past 20, 30 or 40 years; can I retire if I invest these funds poorly? Or what impact will a poor investment have on my retirement?”
This statement is not intended to scare you, but is to provoke thought for the way you invest your superannuation funds in property. At PMC we know that if done properly, an SMSF can be an excellent way of building your retirement fund faster and in a low risk environment.
We encourage our clients to take a methodical approach to investing inside their SMSFs.
From working closely with a number of key wealth advisors we understand the types of properties and areas that present safe investment options for SMSF property investors. Below are just 4 key aspects that should be considered when purchasing a property inside a SMSF:
This is your retirement fund you are investing in so it is important to ensure the property and area is low risk.
Your SMSF contributions year on year should be paying down the principle of the loan, not contributing to costly maintenance and upkeep.
Strong Rental Return
The rental return should be higher than the loan repayments to assist with paying down your loan as soon as possible.
Sound Capital Growth
To increase the value of your investment and generate wealth inside your SMSF.
Note; we are not licensed financial advisers and do not provide advice on SMSF structures or investment strategies. If you would like advice on your superannuation we can introduce you to a licensed financial adviser or you can speak with your financial planner. PMC is licensed to provide property advice only.