Why you should invest in SMSF
If you’re an investor, you know that investing in yourself is the best way to reach your retirement goals. One of the best ways to do this is by investing in an SMSF Property.
It’s easy for anyone who has a business or runs a small company, but it gives you all the benefits of professional investment management at a fraction of the cost.
Many people have built their entire retirement nest egg through investing in property through an SMSF. Here are just some of the reasons why:
It gives you more control.
● You have a choice. You can choose to sell, rent out or live in your property.
● You also have the option of investing in one or multiple properties.
● If you want to invest close to home, there will be less commuting time and more flexibility than if you invest far away from your home base.
It provides more investment options.
SMSF property investments have the potential to provide a wide range of investment options for SMSF investors.
The ability to invest in various assets means that there are opportunities for SMSF investors to diversify their portfolios and take advantage of capital gains tax discounts. This can help you build your wealth, reduce risk and potentially increase returns on your investment.
You can build your retirement nest egg faster.
● You can use your SMSF to borrow money.
● You can take out a loan and invest it in real estate, using your SMSF as collateral.
● The interest on that loan is tax-deductible, so you’ll be paying less for the purchase than you might otherwise be able to.
● If you need more money down the road, getting another mortgage on your property will allow you to access it without selling off part of your home—but keep in mind that if prices go down and you end up owing more than what the house is worth, this could have disastrous effects!
You can stagger your retirement income.
You can stagger your retirement income.
You can draw income from the property while still working, even if it’s a part-time job.
This is because your mortgage payments and maintenance fees are low enough that you have more money left over at the end of each month than you would if you were paying rent.
You can also draw income from the property while retired, as long as your investments generate enough to cover your expenses.
Finally, when it comes time to die, you’ll be able to leave money behind for future generations by passing on your investment in real estate to them so they can keep living there!
It’s easier to manage than other types of investments.
There are many advantages to investing in SMSF property. For one, you don’t have to pay someone else to manage it for you! You’ll also be able to check the progress of your investment anytime, without having to wait until the end of the year. If you don’t like what’s going on with an investment, you can change it—and sell if necessary—at any time.
It grows in value over time.
You will be happy to know that property value increases over time, even if you don’t do anything about it. This means that the money you invested in the property will grow along with its value.
For example, if you bought a piece of land for RM500k and sold it for RM1 million in 10 years, you would have an investment return of 500%. Compare this with other investments like stocks or mutual funds, which may have yielded 5-15% returns during this period.
Moreover, compared to inflation which usually averages 2% per year (but can go up or down), there are good reasons why investing in properties is better than just leaving your hard-earned cash in the bank or putting them into traditional stocks and bonds:
With property values increasing at least 4% per year on average over long periods (like 30 years), they are much more likely than inflation to substantially outgrow other types of investments such as stocks/bonds/mutual funds, etcetera.
Investing in an SMSF is an excellent way to reach your retirement goals faster.
● An SMSF is a great way to reach your retirement goals faster.
● You can use the money in an SMSF to pay for your children’s education or buy an expensive item you’ve been eyeing, like a boat or RV.
● If you want a steady income stream and build up your nest egg simultaneously, then investing in real estate is the way to go.
If you’re looking for an investment that will give you more control, provide more investment options, help you reach your retirement goals faster, and grow in value over time, then investing in SMSF property is the right choice.
After reading this article, it is hoped that you feel more confident about making this critical decision.