1300 381 244
SMSF loans are financing options specifically designed for Self-Managed Super Funds (SMSFs) to purchase investment properties or other assets. Here’s a detailed overview of SMSF loans:
SMSF loans are primarily used to acquire property for investment purposes, helping the fund grow its asset base and increase retirement savings.
Loan amounts can vary based on the property value, the SMSF’s financial position, and the lender’s policies. Typically, lenders may allow borrowing up to 70-80% of the property’s value.
Interest rates can be fixed or variable, and they may be slightly higher than standard residential loans due to the perceived risks associated with SMSFs.
SMSF loans generally have terms up to 30 years, similar to traditional home loans.
Borrowing to invest can amplify returns if the property appreciates in value, potentially leading to significant growth in the SMSF’s asset base.
SMSF loans allow funds to diversify their investment portfolios, adding real estate to the mix of assets.
SMSF members retain control over the investment decisions and management of the property, aligning investments with their retirement goals.
SMSFs must comply with strict regulations, including ensuring that the property is held for the benefit of fund members and that all transactions are conducted at arm’s length.
Borrowing through an SMSF can incur higher costs compared to standard loans, including setup fees, legal fees, and ongoing administrative costs.
Managing an SMSF and understanding the borrowing arrangements can be complex. It’s often advisable to seek professional advice from accountants or financial planners with SMSF experience.
As with any investment, there is a risk involved. The property market can fluctuate, and poor investment choices can impact retirement savings.
Not all lenders offer SMSF loans, and those that do may have specific requirements or restrictions regarding the types of properties that can be purchased (e.g., residential vs. commercial).
Our initial process is to learn about your circumstances and find out what value we can provide to you.
After understanding your circumstances, we develop a loan structure and strategy tailor made for you using our wide range of lenders.
Once we have identified the most suitable lender for your circumstances we will assist with the submission ensuring we communicate with all relevant parties for a smooth settlement.
Call us at 1300 381 244
With over 15 years of combined mortgage broking experience, we have helped clients from all walks of life. We pride ourselves on providing 5 star services to all our client, ensuring they are catered for throughout their journey.
Our mission is to simplify the process from identifying your goals, planning your loan structure all the way to settlement of your loan. Our services range from assisting first home buyers to savvy investors with property portfolios.
112/29-31 Lexington Drive, Bella Vista, NSW, 2153, AUTRALIA
1300 381 244
info@erfs.com.au
SMSF loans can be a valuable tool for individuals looking to invest in property through their superannuation fund. However, due diligence, professional advice, and a thorough understanding of the regulations and risks involved are essential for successful investment and compliance. If considering an SMSF loan, consulting with SMSF specialists or financial advisors can help navigate the complexities effectively.
103/5 Murray Rose Avenue
Sydney Olympic Park, NSW, 2127, AUSTRALIA
1300 381 244
info@erfs.com.au
