Using Super to Buy Investment Properties Melbourne
Property is one of the most popular investment assets in Australia. Using Super to Buy Investment Properties Melbourne promises stable yields and strong capital growth.But it’s not without its risks. Investing in property can be expensive. Stamp duty, legal fees and building and pest inspections are all significant upfront costs. And ongoing expenses like maintenance and council fees add to the overall cost.
Which super fund has best returns?
There are some ways to minimise these costs. One option is to purchase an investment property through a self-managed super fund (SMSF).
SMSFs have grown in popularity over the last decade. It’s a way for Australians to control their financial futures, especially once they’ve run out of borrowing capacity in their own name.
But there are some things to consider before you buy an investment property through your SMSF.
First, you need to check your SMSF’s eligibility. Your fund needs to meet certain requirements and have enough cash to pay for the initial purchase and ongoing expenses. You’ll also need to consider the tax consequences of using your SMSF to purchase an investment property.
The next step is to choose an area with high rental demand. This typically means an urban centre or a city within a 50 kilometre radius of a major city. And it must have a low vacancy rate, which is usually around 1% or less. It’s also worth considering new properties, which typically have the lowest maintenance and management costs.
