- Superannuation exists for the purpose of providing members with an income in retirement.
- Borrowing to invest allows your SMSF to acquire assets it currently doesn’t have enough money to purchase.
- We suggest you discuss whether SMSF borrowing is right for your fund with your accountant or financial advisor.
- The ATO offers SMSF’s tax rates that are capped at 15%, generally lower than personal tax rates
- Capital Gains Tax has been capped at 10% by the ATO for SMSF’s selling assets and maybe reduced to zero if you are in pension phase
- SMSF loans are available for residential and commercial property acquisitions or refinance
- Loans are generally limited to 70% of security value with Limited Recourse to other assets held by the Trust
- Most lenders require Members personal guarantees
If you decide property investment using your SMSF is for you, have your accountant, solicitor or financial adviser check your Trust Deed for compliance and suitability. Once you know that, we’d be delighted to assist you in finding the most competitive loan product to suit your needs and objectives.
Call us on 1800 801 999 for a free, No Obligation assessment or go to FREE RESOURCES to obtain a copy of our SMSF Guide to Borrowing for more information