Self Managed Super Lending – SMSF
At Brilliance Finance Group, we understand the growing trend of Australians wanting to take control of their retirement planning through Self-Managed Super Funds (SMSFs). For those looking to use their SMSF to invest in property, we offer tailored SMSF borrowing solutions to help you achieve your financial goals.
What is SMSF Borrowing?
SMSF borrowing, also known as Limited Recourse Borrowing Arrangements (LRBAs), allows trustees of an SMSF to borrow funds to purchase a residential or commercial property. The property is held in a separate trust, and the lender’s recourse is limited to the property itself, protecting the other assets of the SMSF.
Why Consider SMSF Borrowing?
- Property Investment: SMSFs can invest in a variety of assets, with property being one of the most popular. Whether you’re considering residential or commercial real estate, borrowing through your SMSF allows you to leverage your fund’s existing balance to purchase high-value assets.
- Tax Benefits: SMSFs benefit from concessional tax rates, with rental income from property investments taxed at just 15%, and capital gains tax potentially reduced to 10% if the property is held for more than 12 months. Upon retirement, rental income from properties within an SMSF can be tax-free.
- Diversified Investments: Borrowing within an SMSF allows for greater diversification of your retirement portfolio, providing an opportunity to include property as part of your investment strategy without needing to use the fund’s entire balance.
How SMSF Borrowing Works
- 1. Establish Your SMSF: To borrow through an SMSF, you need to establish a self-managed super fund, which will hold and manage the assets for the benefit of its members.
- 2. Limited Recourse Borrowing Arrangements (LRBAs): The SMSF enters into an LRBA to borrow money to purchase property. The lender’s claim is limited to the property purchased with the borrowed funds, meaning the lender cannot claim against other SMSF assets if the loan defaults.
- 3. Loan Approval: SMSF loans often have stricter criteria than traditional home or commercial loans. However, with the right advice and a strong financial position, you can secure the necessary funding to make your investment a reality.
SMSF Borrowing for Commercial Property
Commercial properties, such as medical practices, offices, or retail spaces, are increasingly popular among SMSFs. If you’re a business owner or professional, using your SMSF to purchase commercial premises offers long-term stability and the potential for rental income. In many cases, you can lease the property back to your own business, providing tax-effective rental payments to your SMSF.
Why Choose Brilliance Finance Group for SMSF Borrowing?
- Industry Expertise: We specialize in SMSF lending, with deep knowledge of the requirements and processes involved. Our team will help you navigate the complexities, from ensuring compliance to structuring the loan effectively.
- Tailored Solutions: Every SMSF is unique, and so is our approach. We work closely with you to understand your specific needs and goals, delivering customized loan solutions that align with your retirement strategy.
- Wide Range of Lenders: With access to over 40 lenders, including major banks, non-bank lenders, and specialist SMSF lenders, we can source competitive loan products that meet your investment needs.
Let’s Get Started
Investing in property through your SMSF can be a powerful way to grow your retirement savings, but it requires careful planning and expert guidance. At Brilliance Finance Group, we make the process seamless, ensuring that your SMSF borrowing is structured for long-term success.
Get in touch with us today to explore how we can help you secure SMSF funding and invest in property with confidence.
