Michelle Schaafsma

Discover the power of property investment with SMSF loans

Are you curious about how to grow your property investment portfolio through Self-Managed Super Fund (SMSF) loans but feeling lost in a sea of financial jargon? While SMSF loans may seem complex, they’re actually a powerful way to take charge of your super and invest in property.

With the right experts on your side, navigating the world of SMSF loans becomes much simpler, giving you the opportunity to understand your loan options and enhance your financial portfolio.

smsf loans

How do SMSF loans work?

When you take out a self-managed super fund loan to purchase an investment property, the property is held in trust by a property trustee for the benefit of your SMSF. This structure ensures that your SMSF assets remain protected. If there is a default on the loan, the lender can only claim the property used as security and cannot pursue other SMSF assets.

As an SMSF trustee, you will receive the rental income from the investment property and this can be used to repay the SMSF mortgage. Once the loan is fully paid off, legal ownership of the property is transferred to the SMSF.

Benefits of buying a property through SMSF loans

Investing through an SMSF comes with a range of opportunities. Here’s how you can benefit from this investment strategy:

Own Your Business Premises: With an SMSF loan, you can purchase your own business premises and have the rent flow directly into your super. Just keep in mind that operating assets aren't eligible.

Capital Gains Tax Benefits: If you hold the property for at least 12 months, you’ll only pay up to 10% in capital gains tax—or none at all if you sell during the pension phase.

Reduced Income Tax on Rental Income: Rental income is taxed at a maximum of 15% and can go straight toward paying off the mortgage.

Asset Protection: If there's a loan default, only the property you purchased is at risk, which means your other SMSF assets stay protected.

Tax Deductions on Interest Expenses: You can deduct interest expenses on the loan from your taxes, which could help lower your SMSFs overall tax liability.

Conquer the challenges of SMSF loans with confidence

Exploring SMSF loans may seem like a daunting journey. Between strict compliance regulations, the complexity of how SMSF loans work, and the difficulty of navigating loan approvals, it’s easy to feel overwhelmed and hesitant. As your Mortgage Choice brokers, we understand these concerns better than anyone.

Why choose us?

Personalised consultation

We take the time to understand your financial goals and tailor our services to meet your specific needs.

Loan comparison

With access to a wide range of lenders, we help you find the most competitive SMSF loan options that suit your financial situation.

Application support

Our expert team assists you at every stage of the loan application process, ensuring all documentation is completed accurately and submitted on time.

Ready to take the next step?

Let us be your trusted guide through the maze of SMSF loans. Contact us today at 0488 858 056 or schedule a free consultation and maximise the full potential of your property investment!

*Tax law is complex. Before making investments through your Self-Managed Superannuation Fund (SMSF), make sure to seek independent legal, taxation and financial advice.

This information is intended to be of a general nature only. It has been prepared without considering your objectives, financial situation or needs. Before acting on this information, you should consider whether it is appropriate for you.

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Contact Michelle Schaafsma or Jeff Fullick at 0488 858 056 or Schedule a callback

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