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Buying an investment property via Super Sydney

buying a property with your super smsf monies in australiaProperty has been a popular route to wealth for many Australians for many years. Buying their own home is often the first investment many people make, and it can sometimes cost them dearly in opportunity costs. Whether it is your first purchase or your next purchase, a Navigate Wealth financial planner and financial advisor can help you navigate the selection and purchasing process to enable you to steer clear of the many pitfalls that can be associated with a property purchase.

Buying a New investment property v's buying an old investment property

Our clients often ask us about the differences between purchasing an older investment property and purchasing a brand new investment property. Being licenced property buyers agents ( via our sister company Navigate Property ) and financial advisers, we are well positioned to guide and advise our clients on the practical and financial pros and cons of purchasing new v’s old property and which one is most appropriate to help them reach their financial and lifetsyle goals. Below are some of the advantages and disadvantages, for a comprehensive and personalised discussion, please contact our office on 1300 505 565 to arrange a complimentary consultation to determine which type is more appropriate to help you achieve your goals.


New Investment properties

One of the biggest advanatages of purchasing a new or newer property is the tax benefits known as “depreciation”. Owners of new investment properties are eligible to claim depreciation on the building structure and the fixtures and fittings in their investment property. The effective life of a new building for Australian Taxation Office (ATO) purposes is 40 years (some exceptions) for residential property. This means a brand new property is able to claim the entire construction cost over the life of the property. Properties that are not brand new can claim the residual of the 40 years. For example, if an investment property is 10 years old and its owner wants to claim depreciation on the structure, they have another 30 years left of deductions to claim.
The depreciation of fixtures and fittings (such as lights, blinds, carpets, kitchens etc) on the other hand are afforded a much shorter timeframe since they often need to be replaced more often than what the ATO has estimated is the effective life of the building (40 years).
Other advantages of purchasing a new investment property is that certain parts of the property would be covered by a builders warranty therefore some of the risk of purchasing a poorly constructed property is reduced. On the other hand, those parts of the construction that are not covered by a builders warranty do pose a potentially higher risk of malfunction since they have not been tried and tested over many years by one or more previous owners.

Old Investment properties

Depreciation on the structure of a building is governed by the date that construction began. This may mean that a property might not be eligible to claim depreciation on the original structure. However, investors will still be able to make a claim on the fixtures and fittings within the building. All eligible assets are valued at the time of settlement regardless of their age. Older properties that have had a renovation are also eligible to claim depreciation on the work completed, even if this work was carried out by a previous owner.
Other advantages of purchasing an old investment property could be the potential to renovate and add capital value to the property or increase its rental return by doing some small or large renovations, extentions and repairs. As an investor, you may or may not have the time or the expertise to carry out the work yourself. If this is the case, you are more likely to outsource the management of the property to a property manager. A good property manager will be able to project manage repairs and renovations on your behalf by enlisting the assistance of various tradespeople and/or a handyman to carry out the works required. Contact our office should you require the contact details of good property manager that can maximise your rental returns.


Buying a First or second home

Many people buy a home and continue to sell and upgrade over time as their finances allow them. This creates many long term consequences that are not immediately obvious. At Navigate Wealth, our financial advisors we take you through a cost benefit analysis of whether you should be buying or renting where you want to live now, as well as in the future, to determine the most appropriate path for you and your circumstances.

Buying an investment Property with super monies or outside of super

Unlike other financial advisors you may have seen in the past, we at Navigate Wealth financial advisers and financial planners based in Sydney understand the power of property and how it fits in a client’s portfolio, so you will not hear a million and one reasons why you should not be integrating a property into your investment portfolio unless there are legitimate reasons not to. We apply a similar research driven approach to direct property investments as we apply to more traditional asset classes. We can also help you with researching, searching, shortlisting and negotiating a property purchase as well as inspections via our property buyer's agent service, Navigate Property Pty Ltd (NSW RE licence 1596464).

A Navigate Wealth Financial adviser / financial planner can help you with finding the most cost-effective way of structuring your finances to enable you to reduce your non deductible home loan debt faster, maximise your tax position and gain the maximum control over your financial situation.

Self Managed Super fund Property -Buying an investment property with your Super fund

With recent changes in legislation it now possible to invest in residential and commercial property via your super fund. First of all, you will need to set up a self managed superannuation fund -SMSF or DIY fund and consolidate your super fund monies into it. There are many positives but also some negatives of doing so, to learn more about the appropriateness of setting up a Self Managed super fund, rolling over your super funds into one and buying property with your super monies via a self managed super fund, click here to book a complimentary appointment with a Navigate Wealth financial adviser sydney today.

To learn more about how to take the uncertainty and stress away of from investing in property, call us today.


Ph 1300 505 565


Suite 602, Level 6, 10 Spring Street Sydney 2000

410 Church Street North Parramatta NSW 2151

(by appointment only)


Experts in Self Managed super funds, direct property investments, direct share investments, direct cash and direct bonds.


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