Jeulia Engagement Rings For Women
Jeulia Engagement Rings For Women

Dec 19, 2013

How to Make Retirement Savings Worthwhile



There comes that special period in the lives of people when regular employment ceases. After building their retirement funds, whose purpose is to sustain them while they enjoy life, they want to be certain that the savings produce maximum benefits. This often includes finding legal ways to use their funds to build property portfolio and invest for the future. Investing in superannuation property is the perfect opportunity for this category of retirees.

                       Total superannuation fund assets ($ billion)

Total superannuation industry assets at the end of the financial year 1996-2006. (Photo credit: Wikipedia)

Investors are free to make property purchases. Superannuation property investment can be done using a Self Managed Super Fund (SMSF). Participation in SMSF property allows for flexibility and control over the investment. Due to this guaranteed characteristic, it is 450,000 and $15 billion strong in direct property. Investors have the option of purchasing any type of residential or commercial real estate, including stores, businesses, offices and factories within SMSF property.

There are easy qualifications requirements when getting started. All that is needed are a 20% minimum deposit, the cost of the property and a negative cash flow for one year. Notwithstanding, people who wish to better qualify can combine their resources with as much as four other members to boost available capital.

There are great tax benefits when investing. They include a 15% rental income tax, as well as capital gains in the first year, before dropping to 10%. In the pension phase, no capital gain tax is paid on property sales.

Retirees of SMSF who feel the need to borrow in order to invest can do so. Loans of up to 80% of the value of the property are financed by most banks. This means that people do not have to deplete their entire retirement funds to invest.

When borrowing to purchase, it is important that investors protect their personal portfolio. This can be done by choosing a property in line with their SMSF income and expenditures. Therefore, the property should cost less than the SMSF earnings.

There is no need to worry about who pays the mortgage and other related expenses. Payments are covered by SMSF property and are deductible to the funds. Included are insurance, interest, rates, maintenance, body corporate fees and property management.

Future investment is crucial. Therefore, professional superannuation property advice is recommended. Not only will the investor would have worked for his or her money, but this venture puts money to work for the individual. It makes the retirement period worthwhile.

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