Beware of superannuation rules when buying property

Superannuaton for property purchaseSuperannuation has become a popular way to buy investment property and for good reason because there are huge tax savings and investors get to decide where and how they’ll invest their funds.

It’s  quite exciting to know that they can become property investors when perhaps their current personal financial circumstances won’t let them (eg a lender won’t approve finance) .  As exciting as this might be, there are strict rules and regulations around superannuation so it pays to get sound advice so there’s an awareness of the do’s and don’ts.

The fund must be compliant at all times and breaching superannuation legislation can result in being penalised with a higher rate of tax.  This would be a disaster.  Superannuation advice is best provided by a fee based financial planner who specialises in this area and is qualified.  This isn’t generally within the scope of accountants, solicitors, mortgage brokers or real estate agents.

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