Self Managed Super - Belouis Investment Group
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Self Managed Super

If you are interested in purchasing an Investment Property using your Self-Managed Super there are important things you need to be aware of.

First and foremost you can’t live in the property and need a significant balance in your super to be able to make a start. If you meet the requirements to be able to utilize your super to build your property portfolio that is an effective way to ensure your retirement is secure and working for you now.


You are able to find out more by speaking to a BELOUIS Self-Managed Super specialist today.

Why use an SMSF to purchase property?

SMSF’s give you the ability to access a lump sum of money to use as a deposit for a property purchase. Superannuation Guarantee contributions of 9% can be used to cover any negative cash flow effects with the fund meaning that properties can usually be purchased and held without any effect in personal cash flow. It can be more tax advantageous to purchase property within the Superannuation environment.

Why set up an SMSF?

The investment flexibility gained from the SMSF structure for a member’s retirement funds is the number one reason for its rapidly growing popularity. Greater control over investments is also very important to Trustees.

Why do I need an investment strategy when establishing my SMSF?

An investment strategy is required by law when establishing an SMSF. The investment strategy outlines the member’s tolerance for investment risk and investment objectives. The fund must remain within the investment objectives outlined within the investment strategy you ensure that it remains compliant. The investment strategy can be updated over time to encompass a member’s changing investment needs.

Can my superannuation fund pay for my personal insurances?

Yes. You are able to house Life, Total and Permanent Disability and Income Protection insurance easily within an SMSF ensuring the trust deed allows for it. The premiums can be paid from the fund balance and members are able to make pre tax contributions to the fund to offset the effect of these premiums. Thus making Superannuation an excellent way to house personal insurances.

What are the benefits of owning property inside super for my retirement?

During pension phase trustees have the opportunity to benefit from tax-free income from property rental income. No capital gains tax on the sale of a property asset during pension phase, which can help investors hundreds of thousands of dollars.

What are my out of pocket expenses to get started?

When establishing an SMSF all costs are incurred by the new SMSF which means that there are no out of pocket expenses to the members of the fund.

How big is the SMSF industry and what are other Australians doing?

The SMSF industry is now the biggest asset class in Australia. Australians have currently invested over $450 billion into SMSF’s. (Source: ATO)

Can I contribute money from my personal income to my SMSF?

Yes. A member can contribute money from their personal income to grow the SMSF or cover expenses. Typically the ATO provides guidelines as to how much money a member can contribute to an SMSF.

Should I buy shares with my superannuation or property?

Under superannuation law, members don’t have to invest in any one asset. This means you can invest in shares, property or a combination of both. Superannuation law allows members to diversify the portfolio into multiple asset classes, not just shares and property. It would be prudent to consider having a diverse portfolio across multiple asset classes.

What legislation do I need to be aware of?

SMSF’s are governed by the Australian tax office and are regulated by the SIS act.

What is pension phase?

When a member attains preservation age, and that is currently between 55 and 57, depending on age they are able to amend the trust deed to change their benefit to pension phase. Pension phase means a few changes for the member and their Superannuation. They must now draw an income from their SMSF and the tax rates within their fund change. Investment income within the fund is now taxed at 0% and capital gains tax (CGT) is also decreased to 0%. This means that you are able to sell properties in pension phase and pay NO CGT. This can save hundreds of thousands of dollars tax for a a member which will all go towards a more comfortable retirement.