An SMSF mortgage allows you to leverage the money in your Self-Managed Super Fund (SMSF) to purchase an investment property – residential or commercial. It’s a powerful way to grow your retirement savings by investing in tangible assets with long-term growth potential.
There are some key considerations when thinking about setting up an SMSF and borrowing to buy a property. That’s why it’s essential to get the right advice and work with a specialist Mortgage Broker who understands SMSF lending requirements. At 1st Street Financial, we’ll assess your borrowing power, walk you through the servicing criteria and connect you with lenders who understand the unique nature of SMSF loans.
As Mortgage Brokers who specialise in SMSF lending, we’ve helped many clients tap into this often-overlooked opportunity to take control of their retirement wealth. With the right guidance, buying property through your SMSF can be a powerful, tax-effective way to build long-term financial security.
Property investment through an SMSF is a great way to diversify beyond shares and managed funds. Many Australians prefer having a tangible asset that offers steady rental income and solid long-term capital growth, especially during uncertain market conditions.
While the rules around SMSFs may seem complex, setting up your fund and arranging finance doesn’t have to be difficult. With the right advice from your accountant and financial adviser – and our lending expertise – it can be a smooth, straightforward process.
Through an LRBA, your SMSF can borrow to purchase property, with the loan secured only against the asset being purchased. We guide you through the entire lending process, working with SMSF-friendly lenders and ensuring full compliance with superannuation rules.
One of the biggest advantages of borrowing through your SMSF is that it has no impact on your personal cash flow or borrowing capacity. The property loan is repaid using your super contributions and rental income – keeping your personal finances separate. It’s a strategy many clients view as “set and forget.”
Within super, rental income is taxed at just 15%, and if the property is sold during the pension phase, capital gains may be completely tax-free. These tax incentives make SMSF property one of the most effective long-term wealth-building strategies available.
If you’re thinking about using your SMSF to invest in property, we’re here to make the process easy. From reviewing your borrowing options to helping structure your loan correctly, we’ll guide you every step of the way.
Contact us today to see how an SMSF mortgage could help grow your wealth and secure your retirement future.
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We’ve worked with clients across Australia to access the different first home owner grants (FHOG) as well as the various stamp duty and other concessions that may be available depending on which state you are in. We can talk you through your various options as well as helping you compare things like buying vacant land vs. an established home.
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