Property investment strategy considerations
Investing through super
- Buy residential property with the money in your self-managed super fund.
- Concessional contributions made into a superannuation fund are generally taxed 15%.
- Earnings within a superannuation fund are generally taxed at 15%. If capital gains are made on a property held for longer than 12 months, the superannuation fund may be subject to a discounted tax rate of 10% on the gains, subject to eligibility.
- Remember, property you hold through your super must be held solely for superannuation purposes — for example, you can’t live in it yourself, or lease it to family and friends.
Using your equity
- Borrow against the equity you’ve built up in your own home, using it as security on another loan.
- Use the additional loan to purchase an investment property or other investments, to start generating extra income and returns.
Renovating for profit
- Buy a property with the potential for improvement and capital growth — renovating it to add profit and sell in the short term.
- Negative gearing may be a tax effective outcome you wish to consider as part of your overall investment strategy.
- Please seek independent tax advice on negative gearing.