Self Managed Superannuation Funds (SMSF’s) are a great vehicle for allowing the astute investor to purchase both residential and commercial property using the funds in their superannuation plus leveraging against the property to allow greater diversity.
The number of lenders who are providing SMSF Lending solutions has reduced with the Commonwealth Bank Group, Westpac Group and AMP Banking pulling out in recent months however there are still options available.
Banks are caught up in the wake of the Royal Commission and are trying to manage their core business by focusing on standard residential lending. Reducing their product offerings is one way they’re able to manage their exposure.
There are significant advantages in buying property in the name of your super fund which include the ability to leverage against the property to increase your investment assets, it can be tax effective with no earnings and capital gains tax payable in pension phase and with the control you have over the investment.
Lending through a Superannuation Fund can be complex and there are a lot of elements you need to consider before you jump into this. It is imperative to get comprehensive advice around the tax, insurance, investments and the lending before deciding if this is right for you.