SMSF Loans:
Self Managed Super Fund Loans.

At Super Finance, we've been helping clients use SMSF finance to buy real estate since it was introduced in late 2007. Below you'll find some clear information about how SMSF loans work – we hope you find it helpful.

Need more detailed information or specific advice? If you'd like to talk about how you can benefit from SMSF finance, simply contact us or call 1300 781 680.

Establish an SMSF Investment Strategy.

Because your SMSF is responsible for financing your retirement, your fund will need to have an investment strategy in place. Any property investments your fund makes should be in line with your overall SMSF goals.

Choose real estate carefully.

While your SMSF can purchase both residential and commercial property, it's essential that you plan carefully before investing. Remember, as mentioned above, any purchase needs to be consistent with your funds investment strategy.

SMSF real property ownership.

Legally, real property purchased by your SMSF will be owned by the Property Trustee. Your SMSF will be the the beneficial owner, which means the SMSF receives any income derived from the real estate.

Leasing, renovating and selling property.

The SMSF's property can be treated in the same way as any other investment property. With regard for the conditions of the SMSF loan, the property can be leased, renovated or sold as the SMSF sees fit.

Income from SMSF real estate.

Because the property is beneficially owned by your SMSF, any rental or lease income will go directly to the Self Managed Super Fund. Similarly, loan repayments are made directly from the SMSF.

SMSF Loan terms and repayments

SMSF loans can be restructured at any time, although naturally this is subject to the loan terms. Remember, it's your SMSF, and not you, that is repaying the SMSF loan. Once the loan is repaid, your SMSF becomes the owner of the property.

SMSF Loans & defaults

If there is a default on SMSF loan, the SMSF's lender can only claim on the property involved – lenders cannot claim on any of the funds other assets.

Ensure your purchase is arm length.

Your SMSF can only buy property from party that has no relation to you. Your SMSF cannot, for example, purchase property from yourself.

Ask for the right SMSF loans advice.

SMSF Loans are relatively new, and have attracted interest from investors and lenders alike. Recently, there's been significant upsurge in brokers riding on investor interest. Take the time to find and speak to an experienced professional with a good track record.

About Super Finance

At Super Finance, we've been helping clients use SMSF loans to secure property since they were introduced in 2007, and have the experience and expertise to help you capitalise on the benefits SMSF real estate ownership.

Contact us about using SMSF loans and real estate investment to achieve greater financial security.

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