Things you need to know about self-managed superannuation funds
Self-Managed Super Funds (SMSFs) have become a popular choice for many people in Australia.
The latest available ATO figures indicate there were 597,900 SMSFs in Australia in June 2021.
Superannuation is a widely used and often legally mandated method of saving for retirement. SMSFs have become quite popular as they allow people to directly control and manage how their retirement savings are invested.
However, there are some important things about self-managed superannuation that you should know about.
According to the moneysmart.gov.au website:
Some people use them as a way of investing in property, but there are often special rules when it comes to using an SMSF to buy a property.
For example, you can not purchase a property in an SMSF and then live in it. A key point to remember about superannuation in all forms is that it is there for your retirement, not things that would enable you to obtain immediate benefits.
Also, banks can apply different lending criteria and rules. For example, some banks will require you to have a 30% deposit for a property bought in an SMSF, whereas you might only need 10% deposit if buying in your own name. Of course, these are general examples and your own situation may differ from this.
In any event, we recommend you get professional advice about whether or not an SMSF is right for you before going ahead and setting one up. Those are some of the things you need to know about self-managed superannuation funds
Call our team for a confidential and no-obligation discussion about SMSFs and the benefits and risks for you.
The information in this article is general in nature and does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions.