SMSF Loans
Thinking about investing via your Self Managed Super Fund (SMSF)? Work with the experts...
SMSF loans can be used to secure residential or commercial properties in a tax effective environment. These arrangements are complex to establish, therefore we recommend doing so with the advice of your financial planner, solicitor and accountant.
Our aim is to equip you with as much information as possible, allowing you to understand the risks, costs, and rules associated with setting up a self-managed superannuation fund to invest in property.
There are a number of rules when it comes to SMSF property investment, namely the sole purpose test, ensuring that residential transactions are 'arms length', not living in the property, not developing the asset and not renting residential properties to a relative. Please consult your advisors for the latest information.
The Evoke Difference
- Strategic structuring advice from award-winning mortgage brokers and property investors with 50+ yrs experience.
- Access 100+ lenders and the best interest rates in the market at absolutley no cost to you.
- Fast approvals via our platnium bank status to get you the right outcomes quickly.
- Fully digital application process where you can track your loan application in real time.
- 6-monthly interest rate reviews and annual strategy sessions to provide peace of mind and keep you on track.
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SMSF Loans for Commercial Property
With 50 years+ experience in the commercial lending space, we can lead you through the complex journey of SMSF lending and Commercial Property Finance. Many business owners are leveraging their SMSF to acquire the premises their business operates out of, turning a business cost into an asset that will generate them long term wealth. We can collaborate with you and your advisors on the best approach to securing SMSF loans for Commercial Property.
For more information about SMSF lending, request a call below.
SMSF FAQs
What does SMSF stand for?
Self Managed Superannuation Fund
What is a SMSF?
A SMSF is a Self-Managed Super Fund which is a private superannuation fund which allows you to control your own superannuation investment decisions and investments.
What is a SMSF loan?
A SMSF loan is where your SMSF is/has taken a loan to acquire an investment.
Can SMSF loans borrow money?
Yes. SMSF loans can borrow money to invest in either property or managed funds or shares. It is worth noting that it is understandably heavily regulated and generally prohibited. SMSF loans are essentially what is called a Limited Recourse Borrowing Arrangement (LRBA) which means that in the event of a default, the Lenders recourse is limited to the asset the loan is tied to and not other assets in the Super fund.
How much can a SMSF borrow?
Each lender has different limits on minimum sized loans and maximum sized loans. These range from $100,000 up to $25,000,000.
What is limited recourse borrowing?
As per the ATO, Limited Recourse Borrowing Arrangement is where a SMSF Trustee takes out a loan with a third party lender to purchase a single asset to be held in a separate trust. In the event of a default the lenders duty to pay off the loan is limited to the investment that was purchased with the loan.
What is a bare trust?
A bare trust is a separate trust from the SMSF which enables the SMSF lending structure to take place. Your financial advisor or accountant will be able to confirm the best structure for you.
Disclaimer: Subject to the lender's terms & conditions and credit approval criteria. Please ensure you seek your own personal legal and taxation advice for your situation.