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Getting into property with a partner

Introduction

Investing in property can be a daunting venture for many, particularly when one is navigating the complexities of financing and ownership. However, partnering with others can make this process more feasible and manageable. In this article, we’ll explore how you can combine superannuation funds to invest in property through a self-managed super fund (SMSF).

Combining Super Funds for Investment

As of recent updates, individuals can combine up to six superannuation funds to enter into a joint venture (JV) for purchasing property through a self-managed super fund. This is advantageous for investors who may not have sufficient savings or equity to make a substantial deposit on their own. By pooling resources, investors can access more significant investment opportunities together.

Ownership Proportion in Investment Properties

One of the key benefits of using an SMSF is the straightforward ownership structure it offers. The percentage of your contribution to the self-managed super fund directly correlates with the percentage of the property you own. For example, if you and your partner collectively contribute 50% of the investment, your ownership in the property will be similarly 50%. This clear delineation of ownership simplifies property management and investment decision-making.

Key Elements to Consider

Investors should keep in mind several crucial factors when exploring property investments through a joint venture. This includes understanding deposit savings, equity contributions, and how superannuation can be used effectively in the investment strategy. By understanding these elements, investors can position themselves more favorably in the property market.

The ability to collaborate with others, combine financial resources, and invest in property efficiently makes the prospect of property investment a realistic and achievable goal for many.


Keywords

  • Self-managed super funds (SMSF)
  • Joint venture (JV)
  • Superannuation
  • Property investment
  • Ownership percentage
  • Deposit savings
  • Equity

FAQ

1. How many super funds can I combine for property investment? You can combine up to six super funds to enter into a joint venture for property investment.

2. How does ownership percentage work in a self-managed super fund? The ownership percentage you have in a property is directly proportional to your contribution in the self-managed super fund.

3. What are the benefits of using a self-managed super fund for property investment? Using a self-managed super fund allows for clearer ownership structures, the ability to pool resources with partners, and potentially greater access to investment opportunities.

4. Can I partner with multiple people in a self-managed super fund? Yes, you can partner with multiple individuals by pooling together the contributions from different super funds in a joint venture.

5. What should I consider before entering a property investment with partners? It's crucial to assess deposit savings, equity contributions, and a solid understanding of the responsibilities and entitlements related to the self-managed super fund structure.