SMSF Lending
SMSF LOANS
Lending to a Self-Managed Superannuation Fund is available via a ‘Limited Recourse Borrowing Arrangement’ which is a complex process and it is important that the Trustees of the Fund receive appropriate financial, structuring, investment and legal advice from qualified professionals. The SMSF industry is highly regulated and there are strict rules to follow. We will work with your Accountant and Financial Planner to ensure your SMSF adheres to all regulations. We are qualified and have a sound understanding of the processes involved in SMSF lending.
Self-Managed Super Funds have many advantages for investors compared to using a traditional institutionally managed superannuation fund. These include:
- Tax savings
- Benefits for business owners – owning business premises
- Asset protection
Lending under SMSF allow you to use your funds inside super as deposit to purchase a residential or commercial investment property.
- Specialised lending product which should be considered after advice from your accountant.
- Loans are generally 70% of purchase price.
- Payments come out of your Superannuation to pay for repayments and costs on the property.
- You are not permitted to live in this property, even in retirement.
- Usually requires minimum of $200,000 before you can invest.
- A bare or custodian trust is required.