Making use of your Superannuation in Buying your Dream House

Superannuation is one of the most popular retirement plans that are preferred by many because of its direct linkage with someone’s employment. There are a lot of good benefits that comes with opting for this type of retirement plan, such as a chance to pay lesser taxes if you would be able meet up with some Government rules. But aside from being a great retirement plan, superannuation can also be used to help you buy huge properties, such as a new house.

Modifications in the rules in superannuation had made it possible for those engaged in it to use their Self Managed Super Funds or SMSF to borrow and use for investments such as a new house. There are a lot of advantages on making use of SMSFs in purchasing a property, especially something big such as your own house.

Using your SMSF could be a strong influence for you to be able to borrow more money for huge investments such as buying properties. You would have more chances of getting a bigger amount of loan from banks and other lenders for your project. Using your superannuation to purchase a property like a house could increase your borrowing power up to 70 to 80 percent of the total amount.

Aside from this, using your superannuation to invest in a property can give you huge savings when it comes to tax penalties. Usually, a property purchased within the SMSF only has a 15 percent tax penalty, whereas those properties which are bought outside the SMSF usually reach up to 46.5 percent in taxes.

You would not have to worry about hefty out-of-pocket expenses because if you take advantage of your superannuation in buying a house, the SMSF would take care of all the costs in the purchase, including the deposit, up-front costs and even ongoing maintenance of the property. You don’t have to worry about spending too much too sudden when buying the property because aside from the home loan you would get, your SMSF would take care of the rest.

Check out: How to Apply for Superannuation Refund

Apparently, there are a lot of great benefits that comes with taking advantage of your superannuation on buying huge properties like your own house. With the use of this useful retirement plan, you would be able to secure not only the fulfillment of your dream of having a house of your own, but also your future once you retire.

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