Super Fund (smsf) Loans
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These changes provide that a super fund can borrow money if: the money borrowed is applied for the purchase of an asset; the asset is held on trust so that the super fund acquires a beneficial interest; the super fund has the right to acquire legal ownership by making payment; the rights of the lender against the super fund for default are limited to the property that was purchased. There are many advantages when a Super Fund acquires residential or commercial property.
Just to name a few... A maximum 10% capital gains tax on sale of property if held for at least 12 months; Potentially nil capital gains tax on sale of property if sold in pension phase; Maximum of 15% tax on rental income; All rental income received assists in paying off the mortgage loan; Any expenses such as interest, council rates, insurance and maintenance may be claimed as tax deductions by the super fund, which potentially reduces its tax liability; The super fund pays the required deposit (+ costs) on the property being purchased; If you are a self employed business owner and currently own commercial property, you can transfer this property into the super fund; A great way to generate wealth for your retirement through tax effective super contributions; Greater investment choices and control over your future; The super fund can pay out or reduce the mortgage at any time (subject to the terms of the relevant loan); Through gearing, the super fund can acquire real estate property for a greater value than that of the funds ‘net worth';
Other than the property acquired, all other super fund assets are safe and cannot be touched by any lender due to the ‘limited recourse' provisions in section 67 (4A) of the SIS (Superannuation Industry - Supervision) Act.
There are few mortgage brokers or bank managers that understand self managed super funds and even fewer that are experts in lending to them.
By using our services you can be sure to get the best advice for your trust loan.
Our experience in this field will also assist you in ensuring the legal structure is established correctly and at minimal cost.
For an obligation-free consultation, or discuss in more detail the various super fund lending options available to you, please free-call us on 1300 649 407 for immediate assistance.
© SMSF Lending | ABN: 99 262 546 801 | Level 3, 29-33 Palmerston Cres, South Melbourne VIC 3205 | Phone: 1300 649 407 | Fax: 1300 847 161
Po Box 7059, St Kilda Rd, Melbourne VIC 8004 | Email: [email protected]