Around the end of financial year there is a lot of talk about superannuation and the effect that interest rates and economic changes are having on super balances.

Savvy Riverina Investors are taking advantage of the strong movement in sales and low vacancy rates as a more secure form of long term superannuation investment. In particular, Fitzpatricks Real Estate has worked hard to achieve an impressive vacancy rate of 1.6% for August, 2013, 1.2% down from the average vacancy rate of 2.8% recorded for the same period for the Riverina area.

Buying an investment property through your self-managed super fund instead of personally, can have many tax benefits including:

–    Lower tax rate on rental income earned by the property
–    Possibly more suitable for your retirement goals in comparison to shares or other investment opportunities
–    Lower capital gains tax if you sell the investment property after 12 months
–    If drawing a pension from your self-managed super fund, capital gains tax can be tax-free

Although the process is more complicated than buying an investment property straight up, the benefits later in life can be well and truly worth it.

Make sure you speak to your financial advisor about your plans and options before proceeding with any real estate transaction, and ensure you follow compliance rules and obligations.