An SMSF or self managed super fund allows Australians to use their superannuation and buy an investment property and make a fixed rental income monthly . However, they can't buy a house they live in.
An SMSF fund can contain one to four members. Each member decides how to invest their superannuation.
Although this may still involve investing in shares, many people now include home ownership in their retirement plans and investment plans.
Setting up a SMSF is a complex process. Professional financial advice is a good idea to help you understand your responsibilities and how to set it up properly.
An SMSF's significant advantage is its ability to invest in property. A super fund can be used to buy residential or commercial property. A fund may borrow a percentage of the property's worth. This activity is subject to certain rules due to the nature of the legal structures.