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Take charge of your super and fast-track retirement with a trusted mortgage broker by your side
I WANT TO BUY AN INVESTMENT
IN MY SUPER FUND
Are you missing out on huge super returns?
If you (and your partner) have almost $200,000 or more in combined super and it’s sitting stagnant in an industry fund, you could be missing out on huge returns! It’s the perfect time to take charge of your super management.
We can help you use or set up a Self-Managed Super Fund to buy residential and commercial property and:
Take control over your investment returns.
Get more tax advantages.
Boost your retirement savings with the power of compounding growth, rental income and building equity.
Ready to unlock your super-power? Find out if you're eligible today.
Building your wealth through super is easy
Whether it’s your first time or you’ve done this before, familiarise yourself with the ins and outs of super and investment borrowing.
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It all begins with a quick and easy connection. Start by taking just 5 minutes to answer a few simple questions right here. Once you’ve completed this, we’ll schedule an introductory session where we can meet either online or in person. During this session, we’ll discuss your financial goals, explore your borrowing capacity, and review your timeline and budget. This is your opportunity to connect with us and for us to understand your needs, so we can chart the best path forward together.
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As a high-net-worth individual, partnering with a mortgage broker can significantly enhance your investment property strategy. We help guide you through exclusive and creative lending solutions, help secure the best loan terms, and provide critical market insights to inform your purchase. We also have a team of buyers agents, accountants and financial advisors, who can help advise you on tax strategies and structuring. Ensure your investments align with your financial goals and navigate the complexities of property investment with confidence and precision.
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Once we understand your loan needs, we handle everything: researching and comparing over 70+ lenders, negotiating interest rates, and preparing your application for pre-approval. We provide a personalised strategy, present competitive loan options and guide you through the entire application process, ensuring you have a clear understanding of your borrowing limits and repayment details. Did you know, an existing property can be used as equity, which means you may not need as much deposit as you first thought.
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Once you’ve found your dream home. We’ll guide you through making an offer, arranging the property valuation, and even deliver the champagne for settlement. We’ll secure the finance and get you approved.
What’s the ‘magic’ super balance?
Technically, there is no minimum balance required in your SMSF to purchase an investment property, but experts recommend building at least $200,000. This gives you sufficient amount to cover, fees, set up costs, purchase costs.
Read below to understand more.
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Managing an SMSF incurs various costs such as setup fees, ongoing administration, and compliance expenses. Having $200,000 is usually the minimum to make these costs more manageable and proportionate to the fund's size.
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Properties purchased within a self-managed super fund (SMSF) usually require a larger deposit compared to traditional residential purchases. $200,000, is typically the minimum deposit to cover 20-30% of a small to median property's value, along with additional funds to cover stamp duties. legal fees and compliance inspections. When it comes to Super Fund loans, banks want to see more deposit to help reduce the overall investment risk and exposure.
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An SMSF loan, is typically paid off using funds inside the self-managed super fund (SMSF) i.e. rental income and contributions. It’s important that you have enough money in the fund to buffer to manage loan repayments. That's why experts recommend having at least $200k minimum.
$300-400,000 is even more of an 'optimal' amount as it will give you a generous liquidity buffer and open the opportunities for higher quality investment properties.
What could a $200k balance get you?
Sady wanted a wealth-building plan to help her set aside funds for a substantial nest egg for retirement. She had an SMSF with $200,000 and used it to borrow additional funds for a residential investment property. Using a variable rate loan with a 7.80% p.a. interest rate, Sady borrowed $300,000, used her super for a 20% deposit, plus set up costs and borrowed the remaining 80 percent.
This strategy allowed her to purchase a property for $475,000, with the total cost, including stamp duty and other fees, reaching $500,000. Sady then rented out the property for $500 per week, generating an annual rental income of $26,000. By using the rental income and other earnings, Sady was able to meet her home loan repayments and used SMSF money to cover property repairs.
As she monitors market trends, Sady can gradually increase the rent as her property appreciates in value. This approach enables Sady to earn a steady stream of rental income while potentially selling the property in the future for a higher amount.
FAQs for SMSF Loans
We’ve got your questions covered!
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An SMSF (Self-Managed Super Fund) loan allows you to borrow money within your super fund to invest in property, typically residential or commercial real estate. The property is held in a separate trust and the loan is paid off using the income generated from the property, along with your super contributions. This can be a powerful strategy to grow your retirement savings, but it comes with strict regulations and risks.
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To obtain an SMSF loan, your fund must be compliant with the Australian Taxation Office (ATO) regulations, and the property you intend to purchase must be for investment purposes only—it cannot be lived in by you or any related party. Additionally, the SMSF must have a substantial balance to cover the deposit and associated purchase costs, as well as enough liquidity to service the loan and meet other fund expenses.
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With an SMSF loan, you can purchase a variety of investment properties, including residential, commercial, or industrial properties. However, the property must be solely for investment purposes, meaning neither you, a member of the SMSF, nor any related parties can reside in the property or use it as a holiday home.
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The benefits of using an SMSF loan include the potential for long-term capital growth, tax advantages, and the ability to leverage your super fund to purchase a high-value asset. Some of the challenges include higher costs, limited access to borrowing (due to strict lending criteria), potential for property market fluctuations, and the complexity of SMSF regulations. It's essential to seek professional advice to ensure this strategy aligns with your financial goals and risk tolerance.
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The returns from your super investment – whether that’s rental income or capital gains – are channelled back into the super fund to increase your retirement savings.
Not sure where to start?
Schedule a FREE 15-minute planning session and get your questions answered by your dedicated broker.
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Still have questions?
You’re not alone! Buying property or borrowing money is one of the biggest decisions you’ll make! Ask us anything, we’re here to help.
