What Can You Invest In With A Self Managed Superannuation Fund?


There is no surprise a SMSF is extremely popular amongst investors, however, there remains a large percentage of the population who remain unclear over how money can be used from the funds. Most assume the money from a self managed super fund can be used to invest in all sorts but in fact, that isn’t the case as there are rules and restrictions over how the money can be invested. Many may find the restrictions to be surprising especially since investments are usually given the green light. So, what can you invest in with money from a self managed super fund?

 Invest In Real Estate

A self managed superannuation fund can be used as an investment in a variety of ways and one which remains very popular has to be real estate. Now, real estate is always a valuable investment as property prices can increase and there is always the possibility of a health return. Of course, market value depends on how strong the market is at the time of the buy and resale but if the investment is handled correctly there is the chance to net a tidy profit. Using the money from a self managed super fund allows thousands the chance to group their money together and buy and invest in properties with potential.

You Cannot Use Money to Renovate Certain Areas within A Home

While you may use your funds to invest in real estate, you are not allowed to make certain upgrades. For instance, you cannot add a third or fourth storey onto a home and use money from the SMSF. However, you could use money from the funds to make necessary improvements such as correcting lighting issues or installing a modern bathroom. Renovating an entire home with the fund is tricky as certain items are not covered. Most extensions will not be covered even though it can add more value to a home; but unfortunately the rules are there for a reason: http://smsfselfmanagedsuperfund.com.au/investment/

Investing With A SMSF Has Potential

When you set up a self managed super fund you are really looking at putting money away for your retirement and it doesn’t just mean adding money whenever you get the time. You can use the fund to invest in and there is a lot of potential too. Let’s say you were interested in real estate and you purchased several homes that weren’t in need of large upgrades, you could get a fairly decent profit and add that into your fund. This certainly helps to increase the fund and you could make the money go a long way. Smsfselfmanagedsuperund.com.au can be useful to consult if you’re thinking about setting up one of these funds or looking for information over what you can do with the money.

Invest Wisely

While it can be great to invest money from a self managed super fund, you have to remember there will always be an element of risk involved. Investments are somewhat risky even when you invest in real estate and while you should hopefully see a nice return, you just don’t know for sure. That is why it’s important to be wary of every investment opportunity and know the risks and rewards fully before making that decision. A self managed superannuation fund is a great option for most and when you invest with it make sure you make the right move.

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