Use your Self Managed Super Fund to purchase property | Clark Finance Group
Make your SMSF go further with Clark Finance Group.
We can help you access some of the best SMSF loans in Melbourne for your needs. Get in touch with us today to learn more.
Leverage Your Super to Purchase Property
Considering branching into the property market with your SMSF? Clark Finance Group can help. SMSF lending refers to using your SMSF to borrow funds through a limited recourse borrowing arrangement (LRBA).
The complex rules around SMSF borrowing leave many people putting it in the ‘too hard basket’. However, when you have the right guidance, you can make the most of your superannuation and grow your wealth sooner.
At Clark Finance, we have an in-depth understanding of the requirements and restrictions of SMSF lending and can help you apply for a Melbourne SMSF loan that aligns with your needs. Our experienced team will assess your borrowing needs using our SMSF borrowing calculator and compare SMSF loans from over 50 lenders on your behalf to ensure you find the right lending solution. Let us explain what’s possible and work with you to create an effective strategy.
SMSF Borrowing Doesn’t Have to Be Confusing
Our team of SMSF lending specialists are here to answer any questions you may have. We’ll talk you through your options so you can figure out how to use SMSF borrowing to your advantage.
Learn more about SMSF loans in Melbourne by booking a free consultation with us today.
Rules of SMSF Lending
You can leverage your superannuation to buy property as
an individual or couple if:
- You are borrowing to invest
- You are purchasing a single acquirable asset (or
collection of identical assets with the same market
value) - You do not buy the asset with the goal of improving/renovating it
- You do not live in the property
- The loan is for the sole purpose of providing a
retirement benefit to the fund’s members
Contact Clark Finance Group for more information.
Other lending options we can assist you with
For several years, Clark Finance Group has been the top choice for Australians looking to bring their property aspirations to life. Aside from SMSF lending, we can also assist with the following:
Loan Options
Melbourne’s SMSF Lending Specialists
At Clark Finance Group, we aim to provide education on an ongoing basis so our clients can make well-informed choices and maximise their outcomes when it comes to SMSF borrowing.
FAQ's
A self-managed super fund property is a property purchased through a self-managed superannuation fund. SMSFs can be used to invest in residential or commercial properties, so long as the purchase for the investment is to generate rental income or capital growth to benefit the fund’s members in retirement.
Self-managed super funds must follow specific rules when buying property, such as using it solely for investment purposes and benefiting the fund’s members upon retirement. This means trustees and their relatives cannot live in or rent the property. The property must also adhere to the sole purpose test, which ensures it supports the retirement benefits of the fund’s members.
Property investments made through an SMSF can offer significant tax advantages. For instance, rental income earned from the property is taxed at a concessional rate of 15%, and if the property is sold after the fund has held it for more than 12 months, any capital gains tax is reduced by one-third. Once in the pension phase, rental income and capital gains may be tax-free.
Yes, SMSF loans allow Australians to borrow money to buy property through a limited recourse borrowing arrangement (LRBA). This means the SMSF loan is secured against the property, and if the loan defaults, the lender can only claim the property and no other SMSF assets. This is a major benefit for many SMSF holders, as it allows them to invest in property without major risk.
Like any investment, there is a degree of risk involved with purchasing a property through an SMSF. For instance, purchasing property involves reduced liquidity, as property is less easily sold than other assets like shares. Self-managed super fund properties must comply with strict regulations, where any breach could lead to penalties or loss of the fund’s tax-concessional status.
Loan Options
Get in touch
More information?
Book a free consultation
support@clarkfg.com.au
Phone 1300 366 670
