If you’ve been in the property game for a while, you’re probably aware that one of the biggest hurdles can be how to structure your investments for maximum gain. That’s where things like a Self-Managed Super Fund (SMSF) or property trust come into play. If you haven’t heard of them, or aren’t sure how to use them, don’t worry. I’m here to break it down in a way that makes sense and helps you unlock new investment possibilities. 

What’s the Deal with SMSFs? 

An SMSF is essentially your own super fund that you control. But here’s the exciting part, it’s not just for retirement savings. You can invest in property using your SMSF. Imagine building a property portfolio inside your super fund, growing your wealth, and paying tax at just 15% on your rental income while you’re building your portfolio. 

Now, the rules around SMSFs are strict. You must use the funds for your retirement. But here’s the key takeaway: If you’ve got equity in your property or a nice chunk of super, you can leverage it to get your foot in the door with investment properties. Plus, any capital gains from properties held in your SMSF are taxed at just 10% (provided you hold them for over a year), a huge win for long-term investors. 

It’s like having a supercharged investment vehicle that allows you to grow your wealth with tax-effective strategies. And in retirement? The best part—you can withdraw your super tax-free if it’s in the pension phase. 

Why Trusts Are a Game-Changer 

Now, let’s talk about trusts. You’ve probably heard about family trusts or discretionary trusts, but how do they fit into your property game? Simply put, trusts allow you to hold property with added flexibility and asset protection. A trust is a legal structure where a trustee holds assets for the benefit of beneficiaries, and the income can be distributed among them as needed. 

For property investors, trusts are powerful. They let you distribute income to family members (which can help with tax minimisation), protect your assets from creditors, and even allow you to scale your portfolio without the same risks tied to personal ownership. Plus, you can own properties in a trust without them being tied to your personal name, which means extra layers of protection if things go south. 

SMSF vs Trust – Which Should You Use? 

Both structures have their place, but it depends on your goals. If you’re keen on using your super to invest, an SMSF is likely the way to go. It’s a fantastic long-term strategy for those who want to blend retirement savings with property investment. If you’re not looking to tap into your super and you want more flexibility when it comes to income distribution, a trust might be a better fit. It gives you the freedom to pass on income and assets to your family, and it’s an excellent tool for managing and protecting your portfolio. 

How to Make it Work for You 

Here’s the secret it doesn’t matter if you’re starting with one property or you’re ready to scale up. The key is getting the right structure in place. At B Invested, we’ve helped many clients use SMSFs and trusts to turbocharge their portfolios and minimise their tax exposure. The right advice and setup can make a massive difference. 

If you’re sitting on equity or you’ve got a solid super balance, it’s time to start thinking about the next step. Your property goals might be closer than you think. 

Let’s Get Smart About Investment Structures 

At the end of the day, SMSFs and trusts are not just for the wealthy. They’re for anyone who wants to take their property investment journey to the next level and make smarter, more tax-effective decisions. 

If you’re ready to dive into these structures or just want to know if they’re the right fit for you, reach out. We’ll walk you through it and make sure you’re set up for success. 

Let’s make your property investment journey even more exciting!