Start a family property investment business with a SMSF

One of the biggest motivations that people have to work hard and be successful in life is so they can provide for their families, live comfortably when they are too old to work and leave behind some kind of legacy for their children.  If it was easy to make money from property investments then everyone would obviously be financially secure and would probably have their own set of mansions.  But sadly, nothing regarding earnings ever comes easily.  The best chance that you and your family will ever stand at being financially secure and at getting a good foothold in the property investment sector is if they combine their efforts by applying for a SMSF.

Start a family property investment business with a SMSF

What exactly is a SMSF?

Self Managed Superannuation Funds also known as a SMSF is a trust structure that is created to provide a source of income for members of this trust when they retire.  These trusts usually have a lot of benefits such as lower return rates but they also have a lot of limitations such as a maximum of four trust members.

Why a SMSF is the perfect solution for family?

When all of your assets are captured in the SMSF trust, the members of the trust – or in this case your family – each have a strong say in the investments and each member has a right to the investment.  The main reason why this is the perfect solution for families is because family can pool their assets together to get the financing they need to start investing in property.  Another good reason to get a loan through a SMSF is because these types of funds have a much greater property return rate than other trusts and loans.

Is property investment the only solution?

With your SMSF you can start any business or invest in any organization but property investments is one of the most beneficial and secure investments that families can make.   Property is a safe bet which is perfect for families who cannot afford to lose a lot.

How to kick start your property investments

The first thing you will need to do is to set up your self managed superannuation funds. Once that is completed you will have to appoint the amount of trustees which you want to include into your trust.  The trustees then have to pool together assets and get a loan through a mortgage broker so your trust can buy the first property.  The key to a successful property investment is to look at a long term plan and to do the calculations beforehand so you and the trustees won’t end up paying more than you can afford for the investment.  Property investments take time to grow and excel and you need to take the right steps at the right time so you and your family can live comfortably when you retire.

When you will start reaping the benefits

Once you or family members reach a retirement age of 55 – 65 you can start earning back on your SMSF by either working part time before you retire or by enjoying a tax free withdrawal amount. Your SMSF will start taking care of you and your family the way you took care of business while you were young.