Can you do this? – Yes! Its actually quite a common and generally very successful strategy many of my clients have used over the years. It can be quite tax effective and is a good way to build wealth using the cash flow your business generates.
Some basic points;
- Best if the property is business real property ie real estate that is a shop, factory, office. Although farmland is also eligible. Residential real estate is not ideal (Houses) but can work.
- You will need a respectable sum in your super (generally $200,000 or more)
- You can take out a loan to assist but you will still generally need at least $200,000 in super
- You will need whats call a Self Managed Super Fund or SMSF we can help you set one up if needed
If you are thinking of setting up a super fund to get your super working for you please contact us here to make a time to come in and see us.
Author: Alan Maddick 28/10/2019