Lots of people nurture the dream of settling down in a pleasing foreign destination where they could take pleasure in the fruits of their labors. However, many folks are beginning to take into account investing in foreign countries to be able to maximize their returns. Consequently, there is growing interest to learn how to get property with super funds, both overseas and within the country. Stock markets are no longer attractive places to invest money due to extreme fluctuations. As a matter of fact, you will find so many advantages to parking investment property in superannuation funds that lots of folks are rushing into it without considering all the facts.

The method of buying property with super funds, whether within the country or abroad, could be very an elaborate one especially since there are many rules and regulations concerning it. However, using a super fund or a self managed super fund (SMSF) to get property is generally a good idea since it enables visitors to plan for their golden years and never having to dig deep into their savings. After all, which person wouldn't want to get an investment property overseas without reducing his / her disposable income? Another advantage of using this route is that one's personal borrowing capacity won't be affected. Further, the income that originates from this investment will undoubtedly be without any income tax after the trustees cross 60 years of age.

The notion of buying property overseas is very a popular one because of a few reasons:
- Some foreign destinations offer a calm atmosphere and pleasant climate all the entire year round, enabling people to savor an excellent quality of life. It's therefore easy to find tenants in these places.

- Back to back global crises have triggered extremely low real-estate prices in certain attractive destinations

- Some countries offer special packages to induce foreign citizens to buy property there, thereby ensuring that perfect deal is available.

- A few of the very popular destinations offer excellent rental returns of around 15% with a very high rate of occupancy, ensuring that the investment is extremely profitable

There are always a few items to be considered when buying overseas property in superannuation funds. Actually, the principles that govern how super funds and SMSFs can invest abroad need to be followed very scrupulously since any deviations will attract penalties. Aside from this, there are many commercial aspects that also need to be used into consideration because the attraction of a seemingly sweet deal could make people act incautiously.

If you want to purchase property with super funds then you have to ensure that:
- The ownership with a super fund is acquiesced by the country in which you wish to get property.

- You can demonstrate that the only real purpose of the investment is to offer retirement benefits for the members of the fund. The investment will have to conform to the Sole Purpose test.

- You or any other person in the fund cannot reside in the property under consideration under any circumstance

- The property in question hasn't been bought from anyone linked to any of the trustees. However, please be aware that rule doesn't apply in case of commercial properties.

- The investment, in property or other things, is managed efficiently in order to make sure that members'retirement benefits are maximized.

- Any costs associated with managing the investment should be kept to the absolute minimum and also needs to look like reasonable. Be prepared to have these expenses scrutinized during an annual audit. As a matter of fact, it is best to check with one's auditor before incurring any expense ostensibly in experience of managing the investment. The best example of this expense is happen to be a foreign destination in order to inspect the property or subscribe a tenant.

Since there are quite a few restrictions applicable to super fund loans to purchase property, you do need to keep yourself updated that the fund can pay for any renovations to the property but it cannot borrow money because of this reason. Also, loans are usually not available for building construction. It therefore stands to reason that you need to only purchase home after factoring in these costs. However, is that expenses such as for example

An important point to be noted: What's promising is that property related expenses such as for example repairs, insurances, taxes and even depreciation are tax deductible.

Buying Commercial Properties Overseas

Many people prefer to focus on commercial and not residential properties when they consider buying overseas property in superannuation funds. Commercial properties are easier to control and tend to have longer leases. These are very important factors once the property is overseas as you won't have the resources to check after the investment. The different kinds of commercial properties that investors look at are shopping complexes, offices, supermarkets and the like. However, these commercial investments do have a few drawbacks as well.

1. Commercial property values are extremely sensitive to economic fluctuations

2. They depend very much on location

3. Entire commercial property developments can don't take off, affecting the values of each unit they contain, aside from how it's maintained

If you determine to go the SMSF route then you'll definitely need to get assistance with managing it due to the need to comply with many laws and regulations. This can use up a lot of your own time and money to manage, something that most people do not have to spare. It is best to cope with a money consultant who features a lot of experience managing these funds, especially with regards to buying property in a foreign country. It's also advisable to get assistance from a really good realtor in the place where you wish to buy property to ensure that you don't park your hard earned money in a place where it can be lost.