Beware of superannuation rules when buying property

Posted on: February 8, 2014
Posted by: Bob Budreika

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.

242 Glen Osmond Road, Fullarton SA 5063
Phone: (08) 8333 0790 | Fax: (08) 7200 2647

© 2019 Planning for Prosperity All Rights Reserved • General Advice WarningPrivacy PolicyFSG / Fee Insert • Site Map • Website by VERSION

This information is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. We strongly suggest that no person should act specifically on the basis of the information contained herein but should seek appropriate professional advice based upon their own personal circumstances. You should read the PDS and consider whether the product/s is right for you. Past performance is not a reliable indicator of future performance.

Strategic Advice Solutions Pty Ltd (ABN 86 619 221 662) t/as Planning for Prosperity is a Corporate Authorised Representative
of Infocus Securities Australia Pty Ltd (ABN 47 097 797 049) AFSL and Australian Credit Licence No. 236523