Home
  • plan
  • Invest
  • Property
  • enquire now
  • Learn
Home
DPN
  • plan
  • Invest
  • Property
  • enquire now
  • Learn

Finance

What is SMSF investment finance?

Using property investment to help you reach your retirement goals.

TAGS

Finance (127) / Property investor (181) / Property buyer (53) / Getting started (146) / Beginner (593) / Intermediate (553) / Expert (576) / SMSF (6) / Tax (54) / House Income (50) / Personal Finance (90) / Loan (25)

Self Managed Super Funds (SMSF) are growing in popularity across Australia as more and more people look for greater control over their retirement income.

A SMSF loan is simply finance used by an SMSF to buy an investment property, with the rental income and / or capital gains directed into the super fund to increase retirement savings.

SMSF investment finance

Use property investment to help you reach your retirement goals.

Free – No Obligation

Ask us for a free Property Investment Plan

Using property for superannuation is nothing new. The big change is legislation that now allows consumers to borrow money for SMSF investments, subsequently providing more people with the opportunity to use property investment as key way to fund their retirement.

There are some strict rules and extensive reporting that come with such investments and the ATO can enforce harsh penalties for non-compliance. For example, the property cannot be used as a holiday house, and while there is some opportunity for business owners to use the property for business purposes, the rental income must be at market value.

In addition, the finance structure for a SMSF property investment is different, often with lenders requiring higher deposit amounts of up to 30%.

There are advantages for SMSF property investments, including tax benefits such as a flat 15% tax on rental income, a reduction on capital gains tax after 12 months and deductions on personal and salary sacrifice super contributions. Any rental income the fund receives can be used by your SMSF to help cover the loan repayments.

Importantly, setting up an SMSF comes with fees (approximately $2,000) and ongoing professional management. Like any investment, it’s important to have a strategy, do your research and talk to your Accountant or Financial Planner to make sure it’s the right option for you


RELATED LINKS

  • How to invest in property with a self-managed super fund

 


Follow us on Twitter for more news, tips and inspiration.
Like us on Facebook and Google+ explore our Pinterest boards.

Like this article or found it helpful? Share it!

Newsletter

Receive our articles directly to your inbox

Next article

What is Lenders Mortgage Insurance?

Go to articles list

Programs

Work with us
Giving back
Become an affiliate
Refer a friend
Help desk
Property Management
Finance

Locations

Head office
Australia
Hong Kong
Singapore

Contacts

Toll free in Australia
P. 1300 723 318
Outside of Australia
P. +61 2 9525 2033

Social Media

Newsletter

Terms of use | Privacy policy | Guarantees

This information is provided by DPN Pty Ltd ABN: 94 630 700 186, Australian Credit Licence 514759. DPN Finance Pty Ltd is an authorised credit representative 504129 and a related entity of DPN Pty Ltd. Casa Capace Operations Pty Ltd ABN: 79 624 981 184, NDIS provider Number 4050038018 trading as Casa Capace.