The SMSF industry is booming, and it’s no wonder. With the average age for retirement increasing and superannuation balances growing, more Australians are looking for ways to make their nest eggs go further. The ability to leverage your super balance through property investment is one of the most appealing ways to do this.
However, many pitfalls are associated with property investment within an SMSF property, including high fees and taxes — not to mention the stress of managing a portfolio yourself. If you’re thinking about getting involved in property investing through your self-managed super fund, read on:
You can avoid costly mistakes.
When you have your SMSF, there are many decisions you’ll have to make regularly. Every choice is essential, but some decisions could be more costly than others.
If something needs to be done correctly, it can lead to costly mistakes for your SMSF and yourself as the trustee. Some of these mistakes include the following:
- Structural errors in how the fund is structured
- Investment strategy errors (for example, buying properties that aren’t strong enough)
- Property management errors (for example, not having enough staff or systems in place)
- Business model errors (for example, hiring unqualified employees)
You’ll have access to the best deals.
The expert will be able to tell you what to look for in a property and what the best locations and properties are available. For example, if you want to buy an investment property, the expert will know where these properties can be found and how much they cost.
They’ll also have access to auctions which are only open for some; this means that only those with expertise can buy these properties at auction, so you must hire someone who knows what they’re doing.
You’ll have someone to help with your balance sheet and cash flow forecasts.
Knowing the property market and understanding what makes a good investment is crucial, but so is having access to the best deals. If you cannot get your hands on these investments, you may miss out on some of the best opportunities.
An SMSF expert can help you ensure everything is in order regarding your balance sheet and cash flow forecasts.
They’ll also be able to show you how to make the most of your investments and help you avoid costly mistakes. If you’re looking for an investment property in Brisbane or anywhere else in Australia, make sure that you get in touch with a tax agent who can help you find the best deals.
You can benefit from the expertise of an expert property investor.
When you’re working in a field that requires expertise, you can often benefit from hiring an expert.
Hiring a property investment expert for your SMSF property is one way to ensure that your investment stays on track and that your funds are being managed appropriately.
For example, let’s say you have decided to invest in the property market through one. You will need someone who has expertise in both of them to help guide you through this process, as there are many aspects involved in both fields. For instance:
- The person who manages the fund must know all of the rules surrounding superannuation so they can follow them correctly; they would also need to understand how properties work to make decisions based on what’s best for investors rather than personal gain.
- If they aren’t familiar with these things already—and if they haven’t worked with other investors before—it may be challenging to guide this process because they might not know which questions should be asked first (or second).
Conclusion
Property investment is one of the most popular ways to grow your wealth. However, it’s also a complex area that can be very tricky for someone who needs to gain experience in the field. If you’re considering investing in real estate, you must find someone who knows what they’re doing and can help guide you through this process.