Self Managed Super Fund Loans

Are you looking for expertise and support when it comes to borrowing through your SMSF? Don’t miss out on the opportunity to boost your retirement savings & accelerate your wealth with a SMSF loan.

Navigating the requirements of diversifying your self-managed super fund portfolio to include assets (normally a residential or commercial property) can often be challenging. Understanding the finance requirements to borrow in your SMSF can be even more difficult!

Here at Southshore Finance, our award-winning team pride ourselves on alleviating that stress from your life. As the specialists in arranging funding for SMSF’s to leverage into property acquisitions, we have the relevant industry experience and contacts to help you achieve your SMSF goals.

We will work closely with you and your advisors to ensure that you receive the best possible finance package when borrowing in SMSF.
If you’re ready to take control of your finances and set up a self-managed super fund loan, you’ve come to the experts.

Contact us to find out more about SMSF borrowing today.

What Is Borrowing Through Your SMSF?

SMSF borrowing is when you borrow or gear your super into property investments that you may otherwise not have the funds to purchase.
Borrowing in SMSF can allow you to own property that can be used to fund your retirement.

There are certain rules and structures set by the Australian Taxation Office (ATO) and the Australian Securities and Investment Commission (ASIC) that you must comply with before setting up a self-managed super fund to invest in property. Your SMSF also must pass the “sole purpose test”.

This test ensures your fund manages investments in the best financial interests of fund members, their beneficiaries, and in accordance with the law.

Before setting up a SMSF loan, you’ll need to be aware of these rules as well as understanding all financial aspects that come with borrowing in SMSF. That’s where our expert advice fits in!

Enquire today about SMSF borrowing.

What is Required to Get Started With Borrowing Through Your SMSF?

Using your self-managed super fund to invest in property often involves a lot of conditions. You will have to meet certain factors to be considered for borrowing in SMSF.

SMSF borrowing factors include deposit amount, expected rental income and frequency of member’s fund contributions.
You will also need to make clear points in your trust deed and investment strategy statement.

Contact us to find out more today.

How Southshore Can Help With Borrowing In SMSF

Here at Southshore Finance, we are one of Perth’s most established finance brokers. Our SMSF experts are skilled in all facets of SMSF borrowing, including being knowledgeable in the rules and regulations that come with borrowing through an SMSF. We don’t just arrange the best interest and repayment options tailored to you; we focus on building your financial success in the future.

If you’re unsure of whether borrowing through your SMSF is right for you, take the next step and talk to a qualified SMSF financial services expert at Southshore Finance today.

Contact us to find out more.

Contact Southshore Finance About SMSF Borrowing

It’s important to seek professional advice that takes your personal and financial situation into account, to determine whether a self-managed super fund loan is suited to you.

Let us help you decipher all the necessary rules and regulations and smooth the process for you.
If you’d like to know more about establishing a SMSF loan, simply fill out the below contact form and we will get back to you shortly.

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Frequently Asked Questions About Borrowing In SMSF

What are some of the benefits of borrowing in SMSF to purchase an investment property?

  • Ability to pool your super with up to three other members to access greater investment opportunities.
  • Capital Gains Tax (CGT) is usually capped at 10% and can drop to 0% once you start a pension.
  • All income goes into your SMSF and can be used to pay off the loan.
  • Loan interest is tax deductible.
  • Once your SMSF owns the property outright, rental income can be used to fund your retirement.
  • Rental income can be used to provide cashflow to fund further property investment.

Contact us to find out more.

What are some of the rules about borrowing in SMSF?

  • Property must be purchased with the sole purpose of providing retirement benefits to super fund members.
  • Property cannot be purchased from an associate, related party or family member.
  • Fund members or related parties cannot live on the property.

Contact us to find out more.

What types of properties are not allowed under SMSF borrowing?

  • Properties scheduled for redevelopment.
  • Properties that are owned by fund members or related parties.
  • “Holiday homes” – even if you in intend to lend to a friend.
  • Overseas properties.

Contact us to find out more.

How much can an SMSF borrow?

Borrowing in SMSF up to a maximum of 80% of the asset value – LVR (loan-to-value ratio).

Contact us to find out more.

Can I get a pre-approval SMSF loan?

Yes! Contact us to get the pre-approval process started.

Does every lender and bank offer SMSF loans?

No, they don’t. That’s why it’s best to work with us to ensure that you receive the best possible finance package. Contact us to find out more.

What is the Sole Purpose Test?

To comply with The Australian Taxation Office (ATO), your SMSF needs to meet the sole purpose test to be eligible for tax concessions. This test ensures the SMSF is maintained for the sole purpose of providing retirement benefits to your members. Failure to meet these requirements could lead to serious penalties.

Contact us to find out more.

Can I ever live in a property purchased by borrowing in my SMSF?

Yes, you can – once you retire. However, you must meet these conditions:

  • Your SMSF passed the sole purpose test while the property was owned by your SMSF.
  • The property is now transferred into your name.
  • You are now legally allowed to access your superannuation.

Contact us to find out more.

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Fax: 08 9474 1542
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