With the investment flexibility it offers, more and more people are choosing to establish a self managed super fund (SMSF) as a vehicle to build their wealth.
Using a SMSF loan, you can purchase investment property through your self managed super fund. Eligible properties can include residential properties, commercial office space, showrooms, offices, retail shops, factories and warehouses.
There are restrictions to be aware of. For example, if you are thinking of buying residential property, you are unable to live in it at any stage until you reach pension phase. You also cannot use a SMSF loan to construct a new home or to finance your existing family home.
With SMSF loans, it’s now possible to borrow up to 80% of the value of the investment property.
Buying an investment property through your SMSF can also give you a pathway to eliminate having to pay Capital Gains Tax (under certain circumstances).
And because your SMSF can include up to four people, you can pool your resources to provide a bigger deposit for the property you’re purchasing.
Individual lenders impose different conditions on what properties they will offer an SMSF loan for. Some insist that the property is situated in a metropolitan or major regional location to be considered.
We advise you to speak with an Ink Wealth Advisor to seek advice that’s specific to your situation before taking any action regarding purchasing property using a SMSF loan. Contact us today to learn more.