Thinking about your health, career, family, and finances is only natural as one year draws to a close, and another opens. Financial prosperity is often high on Australians’ list of new year goals.
With 2023 upon us, if one of your new year’s resolutions is to improve your financial position, keep reading to learn how your super can help you reach your goals this new year!
Setting new year goals
Making resolutions for the new year can represent a fresh start or a clean slate in many areas of our life. It can also be a time when we have the opportunity to assess what is important to us, and clearly define what we want to achieve — not necessarily in the year ahead, but in the years to come.
Making a career switch
COVID-19 meant that many Aussies couldn’t spread their employment wings for a number of years. The ‘new normal’ we now find ourselves in means that changing job is a more achievable reality.
When switching jobs, it’s important to remember the impact this has on your super! For some individuals, this can represent the opportunity to review their super fund or check whether they have more than one fund.
Finding an employer that pays more than the base level of superannuation guarantee means that your superannuation can grow faster than before — which makes it even more important to ensure that your retirement savings are being invested in line with your objectives.
Buying your first home
Did you know that buying your first home could be put in reach sooner than anticipated by using the Government’s First Home Super Saver Scheme? By making eligible contributions into your super fund, you can take advantage of the tax-effective superannuation environment to save your home deposit.
Singles are able to then withdraw up to $50,000 to put towards their home deposit, and couples (if they both participate in the scheme) up to $100,000!
Purchasing an investment property
Purchasing an investment property is an exciting step towards building your wealth and meeting your investment objectives. Throughout researching your investment options, you may come across SMSF property investment.
The availability to purchase direct property (either residential or commercial property) within a self managed superannuation fund is one of the fundamental differences between an APRA-regulated fund and a self managed super fund. However, adding property as one of your SMSF investments does come with a number of considerations:
- Has your SMSF investment strategy been updated to include the purchase of direct property?
- Can the fund satisfy the expected cash flow requirements and liquidity requirements?
- Do you have a good understanding of your existing and prospective liabilities?
- Have you looked at how you’ll establish your limited recourse borrowing arrangement (LRBA) in order to facilitate borrowing money to purchase the property?
More on self managed superannuation fund investment loans
An SMSF trustee cannot borrow money to add direct property to the fund’s investments without an LRBA. SMSF Loans Experts are not only experienced at establishing limited recourse borrowing arrangements, but we can also assist with establishing SMSFs, recommending the best SMSF lending strategy (in line with your SMSF investment strategy, of course) and helping those with bad credit access SMSF loans.
To see how we can help you use your super to meet your new year’s resolutions this year, speak with one of our SMSF loan experts, today.