Did you know:
- In 2007, the Government amended laws to allow a SMSF to borrow money to buy an investment property.
- Based on this ruling, it is now possible to use your Superannuation funds as a deposit to buy an investment property.
Some basic facts:
- 4 members: SMSF can have up to 4 family members or 4 co-workers.
- $100,000 to start: Typically, you need a combined fund balance of $100,000 before you can start looking to buy a property in a SMSF. It is possible to consider making an extra personal contribution to Superannuation in order to get your balance up to the required amount.
- Borrow 80%: Your funds are used as a deposit and Banks will lend up to 80% of the purchase price.
- No personal contributions: Typically, the loan and associated property costs are fully covered by the rent and your employer Superannuation contributions. Properties with low rental returns may require additional personal contributions, hence the need to source a high performing, tax effective property investment.
- No borrowing to renovate: The ATO does not allow the loan funds to be drawn down for renovations to the property.
At Impeccable Finance, we have access to appropriate professionals who can assist with the following:
- Set up of the SMSF
- Ongoing management and auditing of the SMSF
- High performing investment property suitable for SMSF's
- And of course, we can arrange your finance to make it all happen.