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Getting Started with SMSFs: A Beginner’s Guide

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No retirement plans? We’ve got your back.

Let’s begin with the basics. Here’s an insight into why Self-Managed Super Fund (SMSF) is the town’s new talk.

Self-Managed Super Fund (SMSF) is a flexible and secure way of investing for a secure future. It is a private superannuation fund that is beneficial and can be managed by you. Unlike funds administered by big corporations, SMSFs provide you control over your retirement savings to make smart investment decisions for a laidback future.

Wondering why you should invest through SMSFs? Here’s why.

Control your investments directly with an SMSF, giving you the flexibility to create a customized plan to help you achieve your unique retirement objectives.

The cost of managing an SMSF may be less expensive for investors with higher holdings compared to the fees levied by retail or industry funds.

SMSFs provide efficient tax management techniques to save more. With rental income taxed at a maximum of 15% and capital gains potentially taxed at 10% if the property is held for more than a year, real estate inside an SMSF has advantageous tax status.

Flexible estate planning in SMSFs enables personalized distribution of benefits after Estate Planning: They offer estate planning flexibility, enabling a personalized distribution of benefits later on in the future.

In recent years, the percentage of an SMSF’s assets allocated to real estate has risen from approximately 15% in the early 2010s to over 20%. This change reflects a rising belief that real estate is a reliable long-term growth investment.

SMSF allows you to be the architect of your financial future. Here’s how.

With the appeal of high rental yields and possible financial gains, SMSF investments in direct property have increased noticeably. Always take one step at a time. 

Firstly, look for the place or area you would like to invest in. Make up your mind whether you want to invest in a residential or commercial property. Further, have a discussion with your financial advisor or a professional to check if you meet the requirements to invest in real estate through Self-Managed Super Funds(SMSF).

Have a clear cut idea on what you are getting into:

  • Understand the SMSF rules and regulations.
  • Have a clear investment strategy.
  • Analyze the market thoroughly and make your investment wisely.
  • Hire a professional advisor to take you through the legal regulation and tax benefits that SMSFs offers in the long run.
  • Have a property manager for regular maintenance of the property.
  • Finally, have an exit strategy pre-planned.

Understanding SMSFs is a tedious process. Good things don’t often come easy.

Take your time to research before moving ahead with any investment. Poor investment choices may have a negative impact on your retirement savings.

Seek professional advice in finance before taking a huge step in real estate investment. Understand the complexity, benefits and risks that come with SMSFs completely.

Stay updated on what’s next and the upcoming trend in the rel estate market.

Read thoroughly about legal requirements, tax benefits and all the necessary information and documents. 

Investing in an SMSF can offer significant benefits, including greater control over investments and potential tax advantages. Secure your future now!


Do I need professional advice to run an SMSF?

While it is possible to manage an SMSF independently, professional advice is highly recommended due to the complexity of compliance, investment management, and regulatory requirements.

How many members can an SMSF have?

An SMSF can have up to six members, as of 1 July 2021. All members must also be trustees or directors of the corporate trustee.

What are the responsibilities of an SMSF trustee?

Trustees are in charge of overseeing the fund in compliance with superannuation regulations and the trust deed of the SMSF. This include creating and adhering to an investment plan, maintaining precise documentation, filing yearly reports, and making sure the fund continues to comply with all legal and regulatory requirements.

Can an SMSF borrow money to invest?

Yes, SMSFs can borrow money under a Limited Recourse Borrowing Arrangement (LRBA) to purchase a single asset, such as real estate. The borrowed amount is typically secured by the asset being purchased.

How are SMSFs taxed?

SMSFs are generally taxed at a concessional rate of 15% on income. Capital gains on assets held for more than 12 months are taxed at a reduced rate of 10%. In the pension phase, investment income is tax-free.

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