• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

SMSF Loan Experts

It's not complicated when it's done right
Speak to one of our SMSF Loan specialists today 1300 781 680
  • Call 1300 781 680
  • Home
  • Is This You?
    • I Don’t Have An SMSF, but I’d Like One
    • I Have A SMSF Already
  • How We Help
    • Residential SMSF Loans
    • Commercial SMSF Loans
    • SMSF Setup
    • SMSF Refinance
    • SMSF Lending Strategy
    • Bad Credit SMSF Loans
    • NDIS Property Investment
  • Client Reviews
  • FAQs
  • News
  • About
  • Enquire Now
You are here: Home / SMSF Loans / Can I Use My Self Managed Super Fund Property Investment to Buy Property?

8 years ago, we saw the need in a growing market for lending experts who specialise in SMSF. Our team now combines years of experience through every aspect of self-managed super funds. Together, we organise more limited recourse borrowing arrangements (LRBA or SMSF loans) in a week than most other brokers or bank branches in a year. Here we share some of our insights as well as SMSF news with you.

Our expertise has been sought by and seen in Australian Broker, the Herald Sun, Money and Mamamia.

Make sure you get the right SMSF lending advice. Send us a message or call SMSF Loan Experts on 1300 781 680.

Understand your self managed super fund property investment with SMSF Loan Experts

Can I Use My Self Managed Super Fund Property Investment to Buy Property?

December 1, 2016 By SMSF Loan Experts

Do you want to know more about acquiring an SMSF property? You’ve come to the right place, especially when you want to make a smart investment and take the leap to buy property. As market-leading SMSF experts, we want to help. And yes, the short answer is that you can indeed buy an investment property with your super.

In order to do so, the first thing that you will need is to set up a Self-Managed Super Fund Property investment which is the only vehicle which will allow you to use your superannuation to purchase a direct residential property or commercial property, whether now or in a pension phase later.

Once the SMSF is set up, yourself and the other members of that fund (an SMSF can have up to 4 members) will be able to roll over your existing superannuation fund savings into this fund. That money can then be used for cash flow, either to purchase a property, or as a deposit on property.

If you have decided to use the funds as a deposit on an SMSF property, make sure you have an SMSF loan to complete the purchase. Depending on when you buy property and the type of you are purchasing, that SMSF loan can be up to 80% of the purchase price.

Remember, if you don’t have enough available capital, your fund may be able to borrow for the purchase under a limited recourse borrowing arrangement (LRBA), please ask us for more information on this, we will always do our best to help you buy a property with your fund. While it is a smart investment strategy, we know it can be confusing if you haven’t been through the process before.

The rental income from that residential or commercial property will be paid into your SMSF, along the members’ employers’ contributions. These incomes can be used to pay for the SMSF loan repayments and any other costs associated with the investment property or the administration of the fund.

The sole purpose test requires that your fund is maintained only for the purpose of providing benefits to members upon retirement, or a related party in the event a member dies. Please speak to your broker for more information.

Property investment

What Type of Property Must I Purchase with My SMSF?

The choice is yours! If you don’t need an SMSF loan to use your Super to buy an investment property, there is virtually no limitation to what you can invest in. You can entertain anything from the classic suburban house to the most exotic US property, or even a commercial property, holding a single asset or many. There are many retirement benefits too.

If you do need an SMSF loan to complete the purchase of the investment property, your options are a little more limited. The SMSF property will have to be in Australia and it will have to be an acceptable security for your lender, which excludes some fringe properties: small floor plans, high density buildings or locations, some rural properties, properties requiring progress payments (house and land), student accommodations and other forms of residential property which may require property management. Don’t forget this could factor in repairs and maintenance and other expenses down the line, too.

When it comes to property investment, we’d always recommend that you obtain a pre-approval for your SMSF before purchasing a property and would strongly encourage you to discuss any specific property with your broker before bidding or making an offer, just to ensure that it is suitable for lending purposes. This is the best way to bring confidence in your property investment, and join the property market with sound financial planning.

A Good Investment Strategy

With tax deductible benefits for business owners, it’s always an investment worth exploring. For SMSF to buy enquiries, our team holds years of experience through every aspect of self-managed funds. So, when it comes to finding new property through your SMSF, we are the team to speak to. Together, we organise more limited recourse borrowing arrangements in a week than most other brokers or bank branches in a year, with a shrewd knowledge of market value.

We believe that buying property doesn’t need to be stressful. We are different from other lenders because:

  • We fully specialise in SMSF lending
  • We have our own credit license, allowing us to deal with a wide variety of SMSF lenders so that we can offer you a wider option of loans compared to our competitors, even including the banks
  • All brokers are SMSF lending accredited with MFAA (Mortgage and Finance Association of Australia)
  • When it comes to investing in property, we maintain good relationships with other SMSF specialists, including expert lawyers and accountants, providing access to top rated advice across all aspects of SMSF

Experts in SMSF to Buy

Owing to our knowledge and expertise, we come as the recommended finance providers for a large number of SMSF administrators and financial planners nationwide. The process involved with setting up SMSF loans can be complex, but our goal is to keep the process as painless and simple as possible.

If you are an SMSF trustee looking at investing in property using an SMSF loan, or need assistance with capital gains, rental income, taxable income, stamp duty, negative gearing or any other matter linked to SMSF, please contact us.

We will discuss your financial situation in the strictest confidence. And with excellent client reviews, you know you’re in safe hands.

If your SMSF cannot cover the full value, and you need to explore negative gearing or borrow money, we can help and advise you. We care about your future and making sure you have the right lending structure to see the best results.

  • 1Share on Facebook
  • 0Share on Twitter
  • 1Share on LinkedIn

Filed Under: SMSF Loans

Primary Sidebar

Get in Touch

Have a question about SMSF Lending that you'd like answered? We'd love to hear from you. Send us a message or call us directly on 1300 781 680.







    Please send me important SMSF updates.

    Recent Posts

    Common Mistakes To Avoid When Making Improvements To Your SMSF Property

    If you’re wondering if you can renovate your SMSF investment property, the short answer is ‘maybe’. The long answer depends on a few different factors, including what type of renovation you’re looking to do and the source of your funds. Choose your scenario below for more details on renovating your property. Your self-managed super fund […]

    SMSF Rental Property Rules: Can I Stay There While It’s Vacant?

    While purchasing an investment property through your self-managed super fund comes with incredible taxation advantages, it does not come with the same benefits of owning a holiday home under your own name. Owning an investment property at the beach or another seasonal tourist location can be an easy and cost-effective way to secure accommodation for […]

    Avoid These Common Mistakes when Running an SMSF

    When it comes to running a self-managed super fund, the good news is that most people are doing the right thing, but there are so many rules and regulations concerning SMSFs, which can make some aspects a little tricky to keep on top of. While SMSF regulations exist to keep things in line, we’re all […]

    Benefits of an Offset Account for you SMSF Loan

    If your Self Managed Super Fund is holding cash reserves and generating a dismal return, we might have the answer for you — you could reap the benefits of an offset account. Whether you’re keeping cash for liquidity reasons or simply waiting to find the perfect asset to invest in, this feature is a great […]

    Refinance SMSF Loan: Your Questions Answered + How to Get Approved

    Refinancing your SMSF loan could save you thousands of dollars and could potentially add up to hundreds of thousands by the time you are ready to retire. We address the top concerns regarding SMSF loan refinance. Eligibility Criteria to Refinance SMSF Loan For SMSF loan providers to consider offering finance to SMSFs, the fund must […]

    Impact of coronavirus on SMSFs

    As we are all well aware, the Coronavirus pandemic has significantly impacted the way the world works regarding our lifestyle, work-life and education. The extraordinary effect it’s had on the economy has meant that many industries have needed to tighten regulation and introduce unsustainable policies in the interim to endure the uncertain conditions we’re inevitably […]

    What is salary sacrifice and what does it mean for SMSF loans

    In Australia, employers must contribute 9.5% of an employee’s wage into the employee’s chosen superannuation fund. For example, someone earning a wage of $100,000 a year will see a $9,500 contributions made to his or her superannuation fund over 12 months. Unlike the top dollars of that person’s income which are taxed at 39%, the […]

    Setting Up Your Retirement Through an SMSF Loan

    There’s a growing number of people taking advantage of their Self-Managed Superannuation Funds. Recently, the Australian Taxation Office released statistics on SMSFs derived from annual data for 2016, which also included the type of investments the trustees chose as well as the amount of SMSF money invested in different types of asset. In the data […]

    Why proposed SMSF lending changes are misplaced

    Property affordability is high on the political agenda nowadays and by the sound of things, Mr Shorten is not going to let facts get in the way of a bit of useless class warfare for as long as he’s seen by his base as hurting the “wealthy”. Unless of course he’s trying to please some […]

    What You Need To Be Aware Of When Using An SMSF To Buy Property

    This is the full transcript of our popular video “The Pros & Cons of Using Super for Property Investment“. I just wanted to talk to you about something that’s really interesting. We talk to a lot of people and generally what we find is that people either hate self managed super funds or they really […]

    Your Questions

    Do you have a topic or question around SMSF Lending you'd like us to write about? You can simply send us a message letting us know what you'd like to hear from us on, and we'll do our best to address your question or topic in our upcoming posts.

    Footer

    Quick Find Index

    SMSF Property Loans
    SMSF Commercial Loans
    Limited Recourse Borrowing Arrangements – LRBA
    SMSF Setup
    Blog
    Sitemap

    Melbourne Office

    Suite 2, 54 Davis Avenue
    South Yarra VICTORIA 314

    1300 781 680
    SMSF Loan Experts is an authorised credit representative (CR No. 471777) of Australian Finance Group Ltd (Australian Credit Licence No.389087). Copyright © 2021 SMSF Loan Experts | Privacy | Site by Matt Angel
    • Call 1300 781 680
    • Home
    • Is This You?
      • I Don’t Have An SMSF, but I’d Like One
      • I Have A SMSF Already
      • Back
    • How We Help
      • Residential SMSF Loans
      • Commercial SMSF Loans
      • SMSF Setup
      • SMSF Refinance
      • SMSF Lending Strategy
      • Bad Credit SMSF Loans
      • NDIS Property Investment
      • Back
    • Client Reviews
    • FAQs
    • News
    • About
    • Enquire Now