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Self Managed Super Fund (SMSF)Loans

Take control of your super with SMSF Property with SMSF Investment loans
SMSF Property Investment

SMSF Property Investment allows you to manage your Super and take control.  If you run a Self Managed Super Fund you can invest in all types of Property. These include both Residential and Commercial but you can’t invest in vacant land or “under construction” properties.

 

Five things you should know
  • Personal residence in investment properties is not permitted.
  • Single Purpose test (retirement only).
  • Initial set-up costs.
  • Running costs.
  • Legal obligations as trustee.

 

SIS ACT

The amendments were made to the Superannuation Industry (Supervision) Act 1993 (SIS Act) in September 2007. Under the new section 67 (4A) of the SIS Act, SMSFs can borrow provided:

  • The borrowed funds are used to purchase an asset (e.g. real estate, Shares).
  •  The asset is held on trust for the SMSF by another entity (i.e. the Property Trustee).
  •  The SMSF must have the right to acquire legal ownership of the asset by making payment.
  •  In case of defaults, the lender’s recourse against the SMSF must be limited to the underlying asset.
  •  The lender must not have a right of recourse against other assets of the fund.
  •  The property purchased can only be used for investment and cannot be occupied.

 

Products

We can arrange SMSF loans with the following features:

  • Up to 80% LVR for Residential properties.
  • Up to 70% LVR for Commercial properties
  •  Minimum loan size $100,000.
  • Maximum loan size $2,000,000.
  • Competitive 3-year fixed interest rate of 5.64%  (cr 6.24%)
  • Variable rates from 5.85% (cr 6.24%).

 

Dos and Don’ts

SMSF is one of the most important decisions you will make in your life. Before embarking on the path of setting up an SMSF and investing in property you need to ask yourself few questions.

  • Do you have time to run SMSF? Running an SMSF can be time-consuming but rewarding.
  • Do you have enough funds in your current super scheme to be able to borrow and invest in property?
  • Are you really interested in running an SMSF?

Are you able to:

  • Manage investment property
  • Appoint an approved SMSF auditor to audit your fund
  • Appoint an accountant to lodge your SMSF annual returns
  • Keep  records

 

If you need more help in applying for an SMSF Loan, contact our experts at on 1300 537 000 or Submit Loan Enquiry.

 

 

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