A self-managed superannuation fund can hold various asset classes, including direct property. This strategy involves using retirement savings to purchase residential or commercial real estate, generating potential rental income and capital growth within a tax-advantaged environment. For instance, a fund might acquire a residential property, lease it to tenants, and use the rental income to bolster retirement savings.
Leveraging retirement funds for property acquisition offers potential advantages such as portfolio diversification and direct control over investment choices. Historically, property has played a significant role in Australian retirement planning, providing a tangible asset class with long-term growth potential. This approach can contribute to wealth accumulation for retirement, particularly in a stable property market.