After reading about property investment and it got me thinking about commercial property. You see, I hate paying rent and outgoings to run my psychology clinic, so I am considering buying something instead. I am not positive if this is an excellent idea and would like to hear your ideas?
Amazing question. It can definitely make sense if your assumptions is a huge part of the value of your company (such as a restaurant or a retail shop). In that case, buying will provide you more control over your company, and permit you to build up another advantage. And if you purchase your commercial property with your SMSF, all of the rental payments will be investment earnings into your finance and will be taxed at 15 percent.
That having been said, buying on your SMSF is time-consuming and expensive, and can cause your fund being overly concentrated on a single asset – so you will need to buy well! If you are a small or solo practitioner, it might be better to twist a shared lease at a clinic and concentrate on investing your profits elsewhere.