Tax deductions you can claim on your investment property
Investment properties (or properties used for income-producing purposes) have unique tax deductions that you can use to ...
Q. I already have a self-managed super fund and I invest in property outside of the fund, but I’m concerned about combining the two. Should I be speaking to different professionals if I start buying property in my SMSF?
A.Self-managed super funds (SMSFs) can be a great investment opportunity and property can be an excellent option inside an SMSF. However, the devil is in the detail.
Operating an SMSF requires serious responsibility and obligations of the trustees responsible for the fund. One of the things you might hear in the marketplace is a lot of spruikers promoting property as the best investment to make through your SMSF. That’s not always the case.
You need to have an appropriate balance inside that fund. In rough terms you might need a minimum of $150,000 to $200,000 inside the fund if you’re going to look at using it to invest in property.
Also, remember SMSFs can’t be promoted by just anyone. They must be licensed professionals such as financial planners or accountants in their limited capacity inside the SMSF regulation.
So, get advice from professionals, make sure it’s appropriate for you, make sure you have adequate funds and a diversified strategy, and then decide if SMSFs and property are right for you.