SMSF

Super-leveraged property investment is an ideal way for you to grow and accelerate your retirement nest egg. If you have a self managed super fund or are considering establishing your own super fund, you are now able to use these arrangements to help you buy a residential or commercial investment property.

There are several excellent benefits of utilising a SMSF loan as part of your funds investment strategy. A summary of our most popular Self Managed Super Fund loan products is shown in the table below.

SMSF Loans Features & Benefits

Self Managed Super Fund Loan Features

• The SMSF must purchase property from an unrelated party. Purchases must be arms-length. Refinances are available on a dollar for dollar basis.
• Investment in property must be consistent with your SMSF investment strategy.
• The SMSF loan is limited recourse which means that in the event of a loan default the lender only has recourse to the security property and cannot claim any other SMSF assets.
• The security property is held in bare trust for the SMSF which is entitled to its income.
• The titleholder (legal owner) of the security property is the bare trust, Trustee Company. The beneficial owner of the real estate will be the SMSF.
• Your SMSF makes the loan repayments. After the loan is repaid the legal ownership of the property is transferred to the SMSF.
• Generally acceptable security includes metro real estate in most capital cities and larger regional areas, including residential, and non-specialised commercial property.
• SMSFs can deal with the property however and whenever they like, in the same way as investors can deal with “normal” investment properties (eg: lease, renovate, repair, or sell), (subject to the terms of the relevant loan and mortgage).
• All rents are paid direct to the SMSF. Loan repayments are made in the ordinary way from the SMSF.
• The SMSF can pay out or reduce the mortgage at any time (subject to the terms of the relevant loan).
• When the mortgage is paid out in full, title to the property can be transferred to the SMSF or the Property.

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