Revolutionary Opportunity: SMSFs Can Now Invest in New Builds and Land

Must Read

Discover the exciting new opportunities for Self-Managed Super Funds (SMSFs) to invest in new builds and land, revolutionising retirement savings.

Until recently, Self Managed Superannuation Funds (SMSFs) were not allowed to invest in newly constructed houses and land. However, a new model will enable SMSFs to bypass this restriction.

The most recent figures from the Australian Taxation Office (ATO) reported that there were 603,432 self-managed superannuation funds (SMSFs) in Australia as of June 2022, a 4.4 per cent increase from the previous quarter.

Although SMSFs offer many choices, they still have some restrictions.

Currently, investing in established properties, apartments, and townhouses is allowed through SMSF. However, investing in newly built houses and land is not permitted by law, which can restrict investors’ choices, mainly when using debt.

Raymond Hempstead, Director of One Contract Property, created a business and product to address the limitation of choice that caused dissatisfaction.

“The goal was to provide SMSF owners with greater flexibility in using their funds, including investing in new properties and potentially exploring higher returns through investments in NDIS and co-living properties,” Mr Hempstead said.

The process can be used for constructing various types of buildings, such as duplexes and NDIS properties.

This means that the SMSF members are the ones who manage it for their benefit, and they have the responsibility to follow the necessary superannuation and tax laws.

“Superannuation fund members can invest their money in various asset classes such as property, shares, cash, term deposits, debt securities, and other unconventional investments,” Mr Hempstead said. 

“An SMSF allows members to make financial decisions that have the potential to increase their retirement savings significantly.”

Investing in new builds and land through an SMSF offers an excellent opportunity to increase your savings for retirement. Researching the rules and regulations, understanding the risks, and seeking professional advice when considering such investment options are essential. With the proper knowledge, you can make informed decisions that maximise wealth generation possibilities.

- Advertisement -spot_img
Latest News
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img