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Superlatives can be added to rental properties

Australians looking to retire comfortably and safely can boost their retirement nest egg by investing in investment properties.

Founder of DDP Property, Zaki Ameer, recommends that investors use their superannuation as part of their overall investment objectives when purchasing investment properties through self-managed super funds (SMSFs).

You can now deposit 20% of your superannuation and 80% from the lender when you apply for a mortgage, according to Ameer.

In the case of a $400,000 property purchased for $80,000 plus stamp duty, the super contribution would be around $100,000. Rather than investing your employer’s contribution to your super fund, you will invest your entire super fund.

During the last ten years, DDP Property has helped more than 2000 clients purchase properties. It is important to buy property in areas experiencing high growth and demand, even if they are far away from your home, according to Ameer.

His strategy consists of buying lower-priced properties in growth hotspots that have high rental yields to cover all costs without contributing to superannuation.

We have helped clients find properties with a minimum or combined super balance of $100,000 in the past. A long-term strategy is more important than timing the market.

In Australia’s five largest cities, the value of property has increased by nearly 15% in the past year, making it an attractive long-term investment.

Besides the rent, you should also have all the required insurances – life, income, landlord, and home insurance, all of which should be considered. Contacthttps:// your financial advisor for help.”

Ameer points out that there are other costs to consider, such as setup fees for SMSFs and yearly tax filing and audit compliance, however, he believes long-term benefits should outweigh past gains.

DDP Property can assist investors who already have an SMSF, but have not yet purchased a property within it, in creating additional structures, along with its financial planners and accountants, to assist them in purchasing an investment property.

Residential property investing enables investors to invest in an asset class that they understand and trust without experiencing the volatility associated with other asset classes.  

DDP Property offers a cashback program for investors who purchase properties.

Commissions, marketing, and referrals, in his opinion, are difficult to overcome. Over $25,000 is the cost of a brand new $500,000 house and land package.”

Some of these fees are paid in cash by DDP Property to the buyers.

In order to guide buyers through the buying process, we charge them a one-time fixed fee.

Your SMSF can be re-invested with the cashback you receive after purchasing your property.

Any SMSF-compliant investment can be made, such as buying shares, property, or other investments.”

Ameer stresses the importance of seeking financial advice before buying a property through an SMSF.

SMSF Association, the nation’s leading self-managed superannuation body, says trustees should carefully consider both the investment strategy of the SMSF and the circumstances of their investors before making investment decisions.

SMSF Association recommends that a strategy should specify how much exposure the fund should have to the property market, the type of exposure, and how appropriate the strategy is for SMSF members.

This problem cannot be set and forgotten. A SMSF auditor must, among other things, ensure that SMSFs have an investment strategy and that their investments are aligned with it throughout the year.

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