Valued in the market at $17 billion, AMP has further enhanced its reputation by assuming full ownership of technology providers, Super IQ and SuperCorp. An article in the Business Day section of the Sydney Morning Herald talks about AMP’s consolidation of its position as the leader of DIY Super Fund administration.
Super News
The Government Rejects FSI Recommendations on LRBA
Buoyed by the clarification from the central government, a higher number of SMSFs are likely to invest in properties, feels Jonathan Street, CEO of commercial lender Thinktank. An article on the online magazine Your Investment Property sheds light on the topic.
Ronaldo’s Record-breaking 324th Goal Has a Lesson for SMSF Owners
Cristiano Ronaldo is one of the most celebrated footballers of our times. Since Eusebio and Figo, no footballer has delivered as much for Portugal as this 31-year-old genius. While his exploits for his country are remarkable, it cannot still be compared to what he has done for his club, Real Madrid.
Buying Property Through SMSF – 12 Critical Points to Consider First
While the marginal tax rate can get as high as 46.5% for an individual, the rental income for properties purchased through your SMSF is generally taxed at a concessional rate of 15%. It gets even better when you talk about the CGT rebate. You may have to pay 10% in the accumulation phase and nothing in the pension phase. In comparison, rates run close to 23.25% for properties outside Super.
So, are SMSF-financed properties a great idea? I wouldn’t place my neck on the line and say so. They can certainly turn out to be smart investments but unless you show diligence, they can turn sour just as easily.
Here are 12 key aspects to using your SMSF for property investing that you will do well to consider before taking the plunge. Some of these may surprise you and may just save you a fortune.
Small-caps Good For Portfolio Diversification
I came across an article on The Motley Fool where writer Christopher Georges discusses the value of diversification and allocating at least 5-15% of the portfolio in small-caps that can outperform the market average.
SMSFs Perform Better Than Industry Peers
Mike King writes an article for The Motley Fool where he notices how the SMSF sector has laid the big industry funds dead on their tracks. King says that the industry funds have access to expert opinions of research analysts, investment banking analysts, and easy access to various investments. So, it is only natural that they should do better than the SMSFs, given their advantageous placement.
