Why set up a self-managed super fund

Why set up a self-managed super fund

By Darren Standish | 16 January 2014

Standish tnThe popularity of Self Managed Super Funds (SMSF) has surged in recent years and now represents nearly one third of all super assets. Why?

Blogger: Darren Standish, Property Prosperity

The main appeal of this investment is freedom to choose your own destiny. SMSF also allows you to invest directly into residential and commercial property - an option not generally available through other super arrangements.

Depending on your circumstances it can be more more tax effective to buy property through an SMSF rather than buying one outside super. This is because the rental income is taxed at the superannuation tax rate of 15% compared with your marginal tax rate. Once you retire there is also the possibility that the SMSF can pay you a pension tax free.

When the property is eventually sold, capital gains are effectively taxed at 10% (if owned for more than 12 months) and can potentially be tax free if the pension period has started.

The financial benefits of investing in property through SMSF can be significant however property investment rules differ so sound financial advice is essential to ensure decisions made are compliant and reflect your investment strategy.

About Darren Standish

Darren Standish established Property Prosperity in 2004 initially as a property development company, however after repeated requests for assistance the business evolved into a development consulting business.

Property Prosperity was initially focused on assisting clients with subdivisions and negotiating with councils to ensure that clients maximized their return on investment. Over the years additional services were gradually added to ensure the development process was as seamless as possible for its clients. We expanded into offering individually tailored finance solutions and then added Property Development Analysis, Property Sales and a Builder Broker Services.

Darren is the overachiever of the team and has more qualifications than your average university graduate. As well as completing a Bachelor in Economics, Bachelor in Commerce and post graduate in Accounting he subsequently went on to complete a Diploma in Financial Service, Diploma in Real Estate and Certificate IV in Building. He is a qualified Certified Practicing Accountant (CPA), a licensed Real Estate Agent, licensed Mortgage Broker and holds a Builders License.

Why set up a self-managed super fund
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