Self-managed super fund lending | Mortgage Broker in Gungahlin, Taylor, and Harrison
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Self-Managed Super Funds (SMSF) - What are they?
Self-Managed Super Funds (SMSF) are an alternative to typical super fund management, where, unlike other super funds, members of an SMSF can have greater control over their investments as they are the trustees.
SMSF can be used as an alternative pathway to an investment property, provided that the investment property aligns with the fund’s investment strategy and risk profile. Simply put, members of an SMSF can use funds to buy an investment property.
Managing an SMSF is simple in theory, as it works almost identically to any other super fund management, only you are the one doing the legwork. While you’re in the workforce, you contribute to your SMSF and invest those contributions to create wealth to be utilised during retirement.
If you’re interested in how an SMSF may be suitable for you and your long-term goals, reach out to Manan and Girish today for detailed information.
What type of properties can I buy with my SMSF funds?
When using your SMSF funds to purchase a property, you can buy the majority of property types, including houses, duplexes, units/apartments, offices, industrial units, and much more. The important thing to note, however, is that when buying a property with SMSF funds, certain conditions must be met.
Some of the notable conditions to be met are:
- Properties must be purchased as an investment. If used for residential purposes, the property must be rented to a third party.
- Property must not be a development.
- The property must meet the ‘sole purpose test’ provided by the ATO.
It is a very different process of obtaining a regular home or investment loan, so it is vital to know what your options are and which are available to you.
If you’re interested in learning more about purchasing a property using your SMSF, book in with either Manan or Girish today.
Is there any risk to an SMSF?
As with everything involving some sort of investment, there is always some risk present. Concerning running an SMSF, it’s important to know what investment options are available and which ones are considered safe or aggressive. An investment portfolio that is considered too safe may not be making the returns you’re looking for, whereas a portfolio that is considered too aggressive may be volatile.
Due to the complex nature of managing an SMSF, it is always recommended to seek professional advice to ensure that your SMSF is compliant with superannuation laws and is built in a way that will benefit you in retirement.
If you’re ready to take on the task of managing your own SMSF, get in touch with Manan and Girish, your local Mortgage Choice brokers for Moncrieff, Taylor, Gungahlin and surrounding suburbs.
As your local Mortgage Choice brokers for Gungahlin, Taylor, and Harrison, Manan and Girish are also available to assist with:
