Having a beautiful home is the dream of every person. Many people work hard for their life time to buy their dream home. Buying a home requires to make payment at different stages like advance payment, payment on possession and then final payment. For buying a house of own choice, it is very necessary for the buyers to be financially sound and stable. But now buying a home has become easy with many buying options. Buying a house with super in Adelaide is one of the popular ways of having a home. The super fund is the fund that is meant for retirement benefits and can be used by the person for buying a home.
What to consider while using super fund
When a person is looking for utilization of super funds for buying a home, he should consider the following aspects.
- The tax impact: Since the retirement funds are taxed at a certain percentage so, what will be effect if the same fund is used in buying home? Therefore before buying a home with super fund, it is necessary to understand the tax implications and its benefits.
- Business prospective: When super fund are utilized for buying homes, it may be turned into a better business prospects by renting the commercial property. The purchased home can be partly utilized for own living and partly can be rented out. This will help in generating revenue instead of borrowing amount from any other source.
- Capital Gain taxes: When properties are sold, they attract capital gains. But the capital gains are reduced when a home purchased from super fund is retained for more than two years and then it is sold; the capital gain attached is less.
- Controlling aspects: When a home is purchased through super funds, the buyer has control over the planning and the investment aspects. The buyer will not only be the owner but also can manage the funds as per his wish.
Thus, there are so many benefits when a buyer or investor thinks of buying or investing in property through super funds. It is a self reliant purchasing power for the buyer.