SMSF Home loans

SMSF PROPERTY LOANS EXPLAINED

A Self-Managed Superfund loan allows you to purchase a residential or commercial investment property through your superfund. This is an increasingly popular and tax-efficient way of taking control of your retirement planning. The loan is secured against the asset being purchased, and the fund is responsible for repaying the loan with interest.

BORROWING POWER

The amount you can borrow will depend on your financial situation and the value of your superfund, and you may be required to maintain a minimum amount within your SMSF after your property purchase funds have cleared. The borrowing criteria is a little more complex, but we will work with you and your financial planner or accountant to ensure you financials meet requirements before proceeding with your application.

THE ADVANTAGES OF AN SMSF LOAN

If you are a business owner, you can purchase a commercial property through your superfund and rent that property to your business, with rent taxed at the 15% concession rate.

By purchasing property through an SMSF, you may enjoy potential tax benefits, including the deductibility of loan interest and capital gains tax concessions upon retirement.

Investing in property is a great way to diversify your investment portfolio and spread your financial risk.

UNDERSTANDING THE RISKS

Liquidity can be a potential problem should access to funds be required in an emergency, as your property can take time to sell.

SMSF loans are subject to interest rate fluctuations, so it’s essential to have a sound strategy in place to mitigate risks regarding repayments.

SMSFs are subject to strict compliance rules and regulations. Failure to meet your compliance obligations may result in penalties.