Asset protection for investment properties
Asset protection can be got through various methods and here is one that does have good criteria for investigating.
Self-managed super funds are a popular way for investors to purchase investment property. It means that the property buyer is a trustee and this generally will provide an investor (the recipient of the trust) better asset protection and will also usually provide them with tax benefits.
Intending property investors should look at the total of the super that they have in super funds and discuss with their accountant if it is worth changing this over to a self-managed fund. These funds do cost money to manage and reports have to be lodged each year, but in the long run the savings in tax and other benefits can make it well worthwhile if you have enough monies to put in to a self-managed fund.
Properties bought in a super fund must remain as investment properties, in other words you cannot buy it and live in it. Properties in a super fund need to be showing a profit. For the full requirements about buying property through a self-managed fund, check with your accountant.
Commercial properties are often sought after in a super fund because they have a higher rate of rental return that do investment houses.
The asset protection of investment properties in a self-managed super fund is only guaranteed until the member’s preservation age, which is the time in which the super fund is accessible.
Filed Under: Property Investment
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