Self-Managed Super Funds or SMSFs are a great option when it comes to property investment opportunities. A future that is financially stable can be ensured and for this reason this particular investment option is gaining popularity.
It could be quite a complex procedure when it comes to setting up as well as managing a SMSF. This is so because the process involves complying with the super as well as tax laws. But when this procedure is followed after adhering to the different rules and regulations, it can be converted into one of the best ways that confirm a secured future.
So what exactly do we mean by a Self- Managed Super Fund? It is a private fund which can be managed by an individual, and thus it gives one the freedom to make various decisions about investment. Investments can be made in various assets and this includes residential property. SMSF investments cover several benefits like having control as well as flexibility over the various investment options.
Property investment with SMSF could be a great option and the reason behind it is that it provides a plethora of opportunities that are quite attractive starting from tax savings to making the best use of the super for the purpose of building wealth. The rental income which is earned from the investment property associated with SMSF is taxed only a small amount. When the fund gets into the pension phase then the rental income as well as the capital gains actually become free of tax. Limited Recourse Borrowing Arrangement or LRBA can be used to borrow money when the property is purchased using SMSF. However there are some challenges when dealing with this type of investment. But the number of benefits revolving around SMSF investments is more compared to the challenges.
Investing in a property is actually a big deal especially in today’s era and therefore every investor gives a second thought before making the big investment decision. The property market is offering properties that belong to different categories besides the commercial and the residential segments. So if there are plans to invest in the real estate sector then it would be a wise decision to check out the much popular co-living spaces for the purpose of generating rental income in ample amounts.
Co-Living Property Investment is gaining popularity and there is actually a lot to secure from this kind of investment options. Co-living space is one where two or more occupants share the space and the number of people sharing the space depends upon the size of the space being considered.
The people sharing the spaces in a co-living unit also share the total rental and this happens to be a popular choice in areas where the costs of housing are quite high. This leads to higher rates of occupancy which in turn ensures stable and greater income for investors.
Co-living properties tend to generate rental income which are quite higher when compared with the traditional or common rental properties and this is so because more tenants can be accommodated in the co-living spaces.
A sense of community is fostered among the residents sharing the co-living spaces and this ensures reduced turnover as the residents are more inclined to stay for a longer period of time. It can be seen from these instances that Co-Living Property Investment paves way for great opportunities when it comes to making investment decisions in the realm of real estate.
In most of the co-living spaces, there is a team of property management which handles various things like maintenance of the property, cleaning, organising different community events, and there are other services. This facility often relieves the investors of the immense workload that they are often subject to.