SMSF Home Loan Property Broker
Self-Managed Super Funds (SMSFs) can be a great tool for building wealth for your future. With self managed super funds, you have more control over where the funds you've been contributing are invested. One powerful option can be SMSF lending, allowing your superannuation fund to borrow money to purchase an Australian investment property or other assets. At Fundi Finance - Mortgage Broker based in Eumundi, we help clients in Australia navigate the world of SMSF lending and invest in property with confidence.
What is SMSF Home Loan Lending?
SMSF lending is when your SMSF borrows money from a lender to purchase an investment asset, most commonly an investment property. You can refinance throughout the loan term, much like a normal home loan. Your SMSF makes repayments on the loan amount, and any additional rental income is allocated towards your SMSF balance.
The only catch is everything must stay within the SMSF until you are legally allowed to access it.
So if the property increases significantly in value and you want to sell it to improve your financial situation, all capital gains must remain within the SMSF until you are legally able to access those funds.
How Does SMSF Home Loan Lending Work?
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SMSF takes advantage of a Limited Recourse Borrowing Arrangement (LRBA): This is the legal structure that underpins all SMSF Lending. It is an arrangement that means that in the event of default, the lender can only access the specific asset purchased with the borrowed funds, not the entire SMSF.
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Bare Trust: A bare trust is established to hold the purchased asset on behalf of your SMSF.
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Loan Approval: Your SMSF applies for a loan with a lender and goes through a credit assessment for approval.
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Purchase and Income: Once the loan is approved, the SMSF uses the borrowed funds combined with the SMSF deposit contribution to purchase the asset.
Why Choose SMSF Property Loan Lending?
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Diversify Your Portfolio: It gives you the opportunity to make invest the money in your SMSF in property of your choosing, you can branch out from shares and other conventional super investments.
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Potential for Higher Returns: Property investment can offer the potential for strong growth and income over time, potentially giving you higher returns on your investment.
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Tax Advantages: Rental income and capital gains may enjoy tax benefits within your SMSF.
Navigating SMSF property loan, SMSF home loan lending regulations and finding the best loan terms requires specialized expertise. That's where Fundi Finance excels:
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Personalized Guidance: Our team understands the complexities of SMSF lending and works with you to create tailored solutions that fit your investment strategy.
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Competitive Rates: We navigate our extensive lender network to secure the best possible interest rates for your SMSF home loan.
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Smooth Process: Our streamlined process makes SMSF lending as stress-free as possible.
We will do everything we can to tailor your SMSF lending experience to your individual needs, we want to make sure that you get the lowest cost option for your situation so that you can maximize the returns on your investment.
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Important Note
SMSF lending carries risks, and it's essential to seek independent financial advice from your accountant and financial advisor.
This is general advice only.
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