Four Reasons SMSF Property Investment Is Experiencing A Boom

01 AUG 2023 Promoted by One Contract Property 2 min read Investor Strategy

More and more Australians are taking charge of their retirement by establishing an SMSF and investing their super in high-yield property.

The latest ATO data reveals that over 2.2 million Australians owned an investment property, this is 20% of the entire population.

This trend shows no signs of slowing down and is statistical proof that property investment is a huge priority for a significant portion of Australians.

For many Australians, however, SMSF property investment is the preferred investment strategy over traditional property investment.

Why is this?

The answer is simple, SMSF property investment offers high-yield rental returns inside super and therefore increases an SMSFs super balance for retirement.

The Australian Taxation Office (ATO) reports that there are currently over 600,000 SMSFs, collectively investing more than $40 billion in residential real estate.

Still wondering why so many SMSFs choose to invest in property?

Let us present you with four compelling reasons why countless SMSF investors are choosing SMSF property investment.

Tax incentives

SMSF property investors enjoy substantial tax benefits, paying only 15% income tax on SMSF properties, while non-SMSF properties may face taxes of up to 45%.

Increased purchasing power

The fact that SMSFs can have a total of six members means that capital can be combined, therefore increasing the purchasing power of the SMSF.

Reduced capital gains tax

Investment properties owned within an SMSF also enjoy the benefit of having to pay only 10% Capital Gains Tax for properties held for more than 12 months.

Direct Control

SMSFs are the only superannuation structure allowing investors to directly own property and directly control the investment.

Currently, SMSF property investors have access to limited property types, including:

Established properties
Townhouses
Apartments
Commercial Property

However, through One Contract Property, SMSF property investors can use their super to invest in brand new houses and land builds, anywhere across Australia.

The types of brand new house and land builds that can be invested inside of super include: