Self Managed Super Funds And Property Investment: Information You Need To Know

May 17th, 2012 210 Comments
Posted by

What is an SMSF?

Couple with a self managed super fund loanA Self Managed Super Fund is a trust you use in order to manage your own superannuation. Basically instead of the employer provided super fund, you have direct control over your assets. This enables you to choose where you invest your money for your retirement.

You can put the money in a number of different places including capital investments such as shares and property. Each different investment comes with a variety of risks.

What laws and restrictions will affect investing in property?

Whilst is is possible to use your fund to invest in property, there are certain laws and restrictions that can affect your eligibility and limit the options you have available.

Some examples of the legal conditions under which an SMSF can borrow money include;

  • The asset is an asset that the SMSF (you) could legally otherwise acquire if it had available funds
  • A security trust (security custodian) holds the asset until all repayments are made.
  • Once all repayments have been made the SMSF must have the right to acquire legal title of the asset from the Security Trustee

How much you can borrow with these loans differs from normal mortgage applications. Standard investment loans are offered at up to 80% of the property value however lenders usually restrict the amount to 72% or 75%.

It is also important to note that loc doc loans are not available and the fund must be able to prove it can repay the loan.

Which banks and lenders can help and what interest rates are available?

Many banks are not willing to lend to SMSFs. They believe that the loans are more complex and lead to less profit. However there are a number of lenders that do not see it this way and are willing to assess an application. These can be difficult to find however without professional help from a mortgage broker.

Interest rates for SMSF loans are higher than for normal property purchases. Depending upon your circumstances and the risks the lenders perceive, low interest rates may be available. However as there are large differences in pricing between the major lenders this depends largely upon which bank you apply to.

What are the risks associated with investing in property this way?

Property is what is called a capital growth investment and can be useful for capital gains and tax benefits using negative gearing and depreciation allowances. However as the global financial crisis showed, value can fall from time to time possibly leading to large capital losses.

As for cash flow, the property may be vacant or tenants may not pay rent and you may default on your repayments. If the situation arises where you need money it is also difficult to sell quickly at a high price.

How Should I Apply?

Applying for a loan on your own can be difficult. There are not too many lenders willing to lend to SMSFs and each declined application will affect your eligibility next time around as it will go on your file. Even if you find a lender yourself, such as your current bank, you are unlikely to be offered the lowest interest rate.

Applying through a mortgage broker that works with many different lenders and specialises in different loan types such as SMSF loans, is the safest option. As they know the lending criteria of the banks they are aware of who offers these loans, where you may be eligible to apply and who may have the lowest interest rates.

210 Comments

  1. Hey I just made a video you can use to promote your website.
    If you want to see it just respond with the word yes.

  2. Libby Evans says:

    Hi there,

    We run an Instagram growth service, which increases your number of followers safely and practically.

    We aim to gain you 300-1000+ real human followers per month, with all actions safe as they are made manually (no bots).

    The price is just $60 (USD) per month, and we can start immediately.

    Let me know if you are interested and have any questions.

    Kind Regards,
    Libby

  3. I saw that your google my business listing is not working as it should. Like where google show customers your business. I can give you a list of a couple things to fix, is that ok?

  4. Hi, I noticed your website hasn’t embraced AI capabilities yet. Would you be interested in a suggestion I have?

  5. Wwddld says:

    care one nighttime sleep aid buy melatonin generic

  6. Hi, I’ve observed some inaccuracies in your Google listing; is this the correct contact for addressing them?

  7. Ojrhzy says:

    order gabapentin 600mg for sale gabapentin 800mg us

  8. porno izle hyuqgzhqt.IcqqJ2O4cRSY

  9. escort says:

    porn ewrjghsdfaa.PDUh5DwhhJbO

  10. bahis siteleri incest category wrtgdfgdfgdqq.V2biBjSOs3Fk

  11. Hey,
    I would like to share with you the youtube video from my research on the top 5 questions and the best answers for Hotel Reservation and sales job interviews.
    Wish you enjoy it. https://youtu.be/qxiTHptLxY0  

    Regards,

    Hotelier Channel

  12. Hi to all, how is all, I think every one is getting more from this web page,
    and your views are fastidious in support of new users.

  13. Chirs Josh says:

    Hey there [Name],

    Are you ready to revolutionize the way you engage with your audience? Look no further than Outgrow! We’re not your average platform—we’re a dynamic powerhouse designed to transform your business.

    Here’s why Outgrow is your ultimate solution:

    Skyrocket Engagement: Witness unparalleled interaction as your audience engages with personalized, interactive content like never before.
    Boost Conversions: Say goodbye to stagnant conversion rates. Outgrow helps turn curious visitors into loyal customers effortlessly.
    Deep Insights, Better Decisions: Unearth invaluable data insights that shape your strategies, giving you an edge in the market.
    Tailored Experiences: Craft custom experiences that resonate with your audience, elevating your brand to new heights.

    But wait, there’s more! With Outgrow, you’re not just getting a service; you’re unlocking a world of possibilities.

    Ready to take the leap? Click below to explore Outgrow now and witness the magic yourself.

    [https://share.outgrow.biz/outgrow7923]

    Join the Outgrow revolution today!

    Warm regards,

  14. Ujuwpp says:

    furosemide 40mg tablet lasix 40mg cheap

  15. Okchin says:

    cost prednisolone 20mg buy omnacortil generic order omnacortil 10mg

  16. Iawhve says:

    prednisolone 10mg brand omnacortil where to buy cheap prednisolone for sale

  17. Sarah Taylor says:

    Hi there,

    We run a YouTube growth service, which increases your number of subscribers safely and practically.

    We aim to gain you 700-1500+ real human subscribers per month, with all actions safe as they are made manually (no bots).

    The price is just $60 (USD) per month, and we can start immediately.

    Let me know if you wish to see some of our previous work.

    Kind Regards,
    Sarah

  18. Svwtio says:

    omnacortil 20mg for sale omnacortil cost prednisolone 10mg oral

  19. Mgmpjg says:

    cheap prednisolone online buy prednisolone 40mg online purchase prednisolone

  20. Xofjdr says:

    cheap omnacortil 20mg cheap omnacortil for sale order omnacortil 5mg generic

  21. Discover How We Make $25/min with GPT

    Get our Most Profitable AI Apps for Chat-GPT

    *NEW* AI Apps Bank Us $194/Hour With AI

    Case Studies: $120 to $5k/Day Revealed

    *EXPOSED* SECRET Free AI Tools for Profit

    Make 100% With Resell Rights Included!

    Fast-Track Your AI Profit in 2024.. in 1 Click!

    Get the Elite 2024 Tech of The #1 AI Profiteer

    100% GUARANTEED you NEVER SAW these AI Tricks in ALL of 2024.. or 5x your money-back!

    click here so see it

    https://warriorplus.com/o2/a/y53jnb/0

    thank me later

  22. Czhljm says:

    buy omnacortil without prescription order generic omnacortil 5mg buy omnacortil 20mg sale

  23. Znhwpc says:

    semaglutide 14mg without prescription buy rybelsus 14 mg online order semaglutide generic

  24. Hcqddn says:

    rybelsus buy online rybelsus 14mg pills rybelsus 14 mg drug

  25. Chu Garling says:

    Want to skyrocket your brand? TV is the best way to do that!

    Not only can we get you on NBC, CBS, ABC, Fox, etc…

    But we can also get published on over 130 sites like Yahoo.

    We GUARANTEE that we will get your business on one of the major TV networks.

    – You can do this virtually

    – You can do this in the studio

    – We can provide a spokesperson for you

    – You can have Kevin Harrington, one of the original Sharks on Shark Tank on with you

    Go to – ampsvcs.online
    or
    Email Us At – ampbusinesslimited@gmail.com

  26. Interested in making money from the comfort of your home? Here’s your chance to join the revolution.
    Start your journey now and enjoy the power of online earnings.

    Join the Movement Towards Greater Success now! https://bit.ly/work-from-home-opportunities

  27. Yqqhpd says:

    buy semaglutide 14 mg online cheap rybelsus canada rybelsus order online

  28. Hello,

    I want to get backlinks from your website. I can pay with as much ETHEREUM as you want, I would appreciate it if you let me know the price.

    Or if I tell you how to earn 5-20 ETH per week, I think you will backlink me.

    here is the video: https://cutt.ly/rwZZsek6

    Kind regards,
    Tendon Ltd.

  29. Hqztby says:

    order rybelsus 14 mg pill buy rybelsus 14mg online cheap rybelsus order online

  30. Steven Clark says:

    Your Google setup seems incorrect; let me know if you want me to explain the issue.

  31. Jane Garside says:

    Hi,

    Are you ready to search for the perfect private jet charter?
    One with an extensive network that brings together over 10,000 exclusive private aircraft spanning 40K destinations around the globe.

    Click here https://orcadigitals.net/cheapest-private-jet-charter-flights to enjoy access to the best empty leg private jet charter prices available across the market.

    Jane Garside
    30934 Grady Pines
    New Evangeline
    Indiana, 03669

  32. Cvhxwc says:

    buy isotretinoin 10mg buy generic accutane 20mg cost isotretinoin 10mg

  33. porno izle says:

    am siteleri asillartaklitler.Oz0QHVr4MCsb

  34. Ievnjh says:

    buy semaglutide tablets rybelsus medication cost semaglutide

  35. 10yenharwichport.com
    Fang Jifan은 안도감을 느꼈고 그는 정말 좋은 소년입니다.

  36. seksi siteler hephupx.uofb4J7FiZhc

  37. Edxnma says:

    purchase semaglutide semaglutide 14 mg tablet buy semaglutide pills for sale

  38. I’ve been working with freelancers for over nine years now.

    One of the biggest things I want businesses to know about working with freelancers is how much time and money they can save by hiring freelancers for projects.

    Whether you’re a multi-level corporation or a small start-up, chances are, you could benefit from using freelance work.

    The details here: https://saloof.com/how

  39. Aqhgdc says:

    brand accutane 40mg order isotretinoin online accutane 10mg sale

  40. Cehqya says:

    isotretinoin 40mg oral accutane 40mg canada how to get accutane without a prescription

  41. Qcjdtz says:

    buy ventolin inhalator albuterol buy online strongest over the counter antihistamine

Leave a Reply