One of the most exciting developments in property investment are property warrants. This will enable invesors to borrow money through a self managed superfund to buy an investment property.
Typically you need a 30% deposit and you are are looking at higher establishment fees than a normal loan. For example if the property was $400,000 then the set up fee would be 1.5% or around $6,000. This product has been around for much of this year however the establishment fees were around $20,000. The interest rate is around 8.6% and there are ongoing fees of around $4000 per year. There are also a number of smaller charges.
The upside is that you can salary sacrifice all the payments making these 100% tax deducatable. The next great thing is that if you buy a property through a superfund and keep it until you are 60 and then sell the property capital gains tax does not apply. When you weigh up all the benefits this is a great way to buy property.
If you need or want to sell the property earlier as long as you have kept the property for more than 12 months then you will only pay 15% tax and a maximium of 10% capital gain. I have great financial planner who understands the product much better than me.
Typically you need a 30% deposit and you are are looking at higher establishment fees than a normal loan. For example if the property was $400,000 then the set up fee would be 1.5% or around $6,000. This product has been around for much of this year however the establishment fees were around $20,000. The interest rate is around 8.6% and there are ongoing fees of around $4000 per year. There are also a number of smaller charges.
The upside is that you can salary sacrifice all the payments making these 100% tax deducatable. The next great thing is that if you buy a property through a superfund and keep it until you are 60 and then sell the property capital gains tax does not apply. When you weigh up all the benefits this is a great way to buy property.
If you need or want to sell the property earlier as long as you have kept the property for more than 12 months then you will only pay 15% tax and a maximium of 10% capital gain. I have great financial planner who understands the product much better than me.
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