An SMSF is a private superannuation fund you manage yourself, regulated by the Australian Taxation Office. SMSFs can have up to four members. All members must be trustees (or directors if there is a corporate trustee) and are responsible for decisions made about the fund. If you have an SMSF, you are responsible for managing it and complying with all relevant laws.
SMSFs are different from mainstream funds regulated by the Australian Prudential Regulation Authority (APRA) which pool members’ savings and invest the money for them. (source:https://www.moneysmart.com.au)
- consider finding an SMSF expert to help you with the initial set up.
- create a trust deed.
- appoint trustees: individual trustee or corporate trustee
- register with the ATO.
- set up a bank account for your fund.
- roll over your super.
- set up an investment strategy.
If you are looking to grow your wealth by purchasing an investment property using a SMSF Loan, contact our Melbourne mortgage broker today and we will tailor a Loan Proposal to suit your needs.
The benefits of using your superannuation funds and SMSF Loans for property investment can be great. Everybody like to be pay off an investment property with the 9.5% super payments your employer makes on your behalf. The tax benefit is obvious.
There are some essentials to use your SMSF to borrow to purchase investment property in Australia.
- Suitable for Australian residents with an established SMSF as well as those planning to establish a SMSF
- Use rental income and super contribution for repayments
- A limited recourse loan where the amount recoverable on default is limited to the secured property itself, and all other assets of your SMSF are protected
- Choice of repayment types – principal and interest, or interest only
- Flexible terms from 1 to 30 years (interest only – maximum 15 years)
- At the end of the interest only term, repayments automatically change to principal, interest and fees for the remainder of the contract term
- Rates – variable, fixed and combination loans (fixed and variable) available.
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