OUR SERVICES
SMSF Loans
Investing in property through your Self-Managed Superannuation Fund (SMSF) can be a powerful strategy to significantly enhance your retirement savings by utilizing the benefits of leverage.
While SMSF loans operate under stricter regulations and involve a more specialized lending market compared to traditional mortgages, Claremont Financial provides expert guidance throughout the entire process, ensuring you navigate it smoothly and achieve a successful outcome.
Unlocking the Potential of Property Investment within Your SMSF
SMSFs have gained considerable traction among Australians seeking greater control over their retirement assets. Investing in property within an SMSF allows you to leverage your funds to acquire real estate, a strategy generally not available within professionally managed superannuation funds. Furthermore, investing in both commercial and residential property through your SMSF can offer significant tax advantages. Business owners also have the unique opportunity to purchase their business premises within their SMSF and lease it back to their operating business.
Acquiring Property Through Your Self-Managed Super Fund
When considering purchasing property through your SMSF, it's crucial that the investment aligns with the 'sole purpose test' – meaning the primary objective must be to provide retirement benefits to the SMSF members. The investment must also fit within your SMSF's established investment strategy and risk tolerance. If an SMSF loan is required to finance the purchase, the borrowing must be structured through a bare trust under a limited-recourse borrowing arrangement. It is essential to seek professional financial advice before proceeding with any property purchase through your SMSF.
Is SMSF Property Investment the Right Strategy for You?
Determining if SMSF property investment is the right path involves weighing the potential benefits against the associated costs. Significant advantages include the potential for accelerated growth of your superannuation savings through leverage and the possibility of leasing commercial property to your own business. However, it's important to consider that the process is more complex than purchasing property outside of superannuation, and interest rates on SMSF loans are typically higher.
Therefore, seeking expert professional advice from a Claremont Financial broker is paramount.
