Self Managed Superannuation Funds (SMSF’s) are a great vehicle for allowing the educated investor to purchase both residential and commercial property using the funds in their super plus leveraging against the property. This allows investors to have a diversified portfolio.
The overall number of lenders who provide SMSF Lending solutions has diminished however there are still lending options available.
All of the major banks in Australia have been caught up in the wake of the Royal Commission and are trying to manage their core business by focusing on standard residential lending. Reducing their product offerings is one way they’re able to manage their exposure.
There are significant advantages in buying property in the name of your super fund which include:
The ability to leverage against the property to increase your investment assets,
It can be tax effective as there are no earnings or capital gains tax payable in the pension phase
You have control over the investment
Lending through a Superannuation Fund can be complex and there are a lot of elements you need to consider before you jump into this. It is imperative to get comprehensive advice around the tax, insurance, investments and the lending before deciding if this is right for you.
Financial Advisor. Entrepreneur. Co-founder and managing directory at Forward360, Simon ensures all clients get the financial advice they need to reach and exceed their financial goals — both personal and business.
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