It would seem SMSF loans have become an increasingly popular way to access the capital required to get a foothold on the property ladder.
Why are SMSF loans so appealing?
Just as SMSFs offer the chance to take charge of your super, SMSF loans give you the opportunity and flexibility to enter Australia’s heated property market. Changes in superannuation laws mean SMSFs are now permitted to borrow money to buy residential or commercial real estate. This strategy is proving popular with small business owners. It also makes SMSF loans an attractive option for first home buyers who find themselves priced out of the residential property, as well as older folks looking to secure their retirement future with a “buy now and hold” approach. With a concessional tax rate of 15% in the accumulation phase and no tax in the pension phase, investing in SMSF property is arguably the best tax incentive around.
SMSF Related Party Loans vs. Third-Party Loans
Australians tend to be unaware of the advantages offered by related party loans, typically choosing the costlier option and engaging a third-party lender. Regardless of whether you choose a related party or third-party loan, or a combination of the two, it’s critical you structure the transaction in an efficient, timely, and compliant manner.
With our in-house mortgage broking division we bridge the gap between the countless phone calls and
emails between lender and accountant making your refinancing and borrowing much less stressful.
SMART Business Solutions is a registered financial services provider with a strong working knowledge of SMSFs. We are perfectly positioned to guide you through the SMSF loans process in collaboration with our in-house mortgage broker, selecting the most suitable lender for your needs, and buying an SMSF property.
By using our mortgage broking service, we eliminate the discord between lenders, accountants and financial planners. We'll work collaboratively with you for the entire purchasing journey, greatly minimising your time and stress involved in getting your investment across the line.
SMART Business Solutions can also team with you to develop a financial plan, providing you with a road map for your financial future. We
will also check in with you to keep you on track.
If your current lender is not prepared to give you a better deal then it might be well worth taking the time to speak with a mortgage broker to find a lender that will. Here’s how to refinance your current home loan.
In the past 12 months we have seen record numbers taking out fixed-rate home loans. Particularly during COVID-19 times, it's worth considering what might happen with interest rates in the future and whether that means you too should think about a fixed-rate home loan.
There are a few changes earmarked for superannuation commencing 1 July 2021. These changes will impact both employers and employees. Read the details here to know what's expected.
If you have a home loan, there are many reasons you may consider refinancing. That could include wanting to borrow more, access different home loan features or simply to get a better interest rate. We explore the more common reasons for refinancing, including a few you may not have thought of.
