Self Managed Super Fund
You Can Use Your Super To Purchase A Residential Investment Property And We Can Show You How!
Self Managed Super Fund
You Can Use Your Super To Purchase A Residential Investment Property And We Can Show You How!
Build Your Wealth With Your Own Super
For many, the talk of saving up retirement funds is the last thing on their mind today. However, most of us have Superannuation in place for that very reason.
You may be actively tracking your Super, or you may have left it on the sidelines. In either case, it is there for you, and it is real cash.
How Can Your Super Work For You?
What is clear is that your Super could be the ticket to get you into the investment property market with money you already have in it. Your SMSF can be the vehicle to acquire a loan for the purpose of purchasing residential investment property.
And, in doing so, you diversify and better balance your Super portfolio holdings (some stocks, some property) so that you have the potential for better overall returns and minimise your potential investment risks.
Have you thought about what will fund your retirement?
With the way things are going, it’s suspected that pensions will eventually disappear. Our economies are struggling to pay today’s pensions, while we have an ever increasing aging population that will be expecting them. One recent bandaid solution was to increase the age from 65 to 70 for pension entitlement. With no pension to rely on, what will fund your retirement?
I strongly believe in the asset class of property investing. It grows with time and inflation, while giving you an ever growing rental return. Comparatively, cash in the Bank could also give you an interest return, for your spending, but cash will not grow with time and inflation nearly as quickly as would bricks and mortar.
Maybe you know the Fund Manager, but then again, do you know the very person who is in charge of that Fund Manager? Can you put a name to that person? Who is this stranger that is managing your super, and how much are they earning from your money?
Did you know, that when they lose your money, they still get paid their fees and charges?
Well now over one third of Australians have made the wise choice of moving away from the Traditional Super Funds (usually set up by their employer) and into their own Self-Managed Super Fund (SMSF).
Once it is set up, you are the “Trustee” of your SMSF, being the Controller of your money. You choose how to invest your Super Funds.
Benefits for buying a property with your SMSF
⭕ You can pool the super of up to 4 members of your family into your own SMSF, accelerating your Wealth Creation by building a bigger portfolio sooner.
⭕ As long as you keep your property investment in your SMSF until you are over 60 and retired, when you convert your SMSF into the pension phase, you will pay no Capital Gains Tax (CGT) if you decide to sell. This can run into a very large number in savings.
⭕ Keeping your investment property inside your SMSF, you will pay no tax on rental income in retirement and you will only pay 15% tax on the rental income while you are saving for retirement. This is a great saving on Tax.
⭕ Your SMSF could potentially purchase your business premises, allowing you to pay rent directly to your SMSF at the market rate.
FAQ
Why should I use a mortgage broker instead of going directly to a bank?
Mortgage brokers have access to a variety of lenders and loan products, potentially providing you with more options and better terms than if you were to approach a single bank.
How do I know if I qualify for a mortgage?
Mortgage brokers can assess your financial situation and guide you on the likelihood of loan approval. They can also provide advice on steps to improve your eligibility.
What information do I need to provide to get started with a mortgage application?
Typically, you’ll need to provide details about your income, employment, credit history, and other financial information. The mortgage broker will guide you through the required documentation.
How does the mortgage application process work with a broker?
The process involves an initial consultation to understand your financial goals. The broker will then recommend suitable loan options, assist with the application, and facilitate communication between you and the lender.
What types of mortgage loans are available, and how do I choose the right one?
Mortgage brokers can help you explore various loan options, including fixed-rate mortgages, adjustable-rate mortgages, FHA loans, and more. They will guide you in choosing the loan that best fits your needs.
How long does it take to get a mortgage approved through a broker?
The timeline varies, but a mortgage broker can help streamline the process. Factors such as document availability, property appraisal, and lender processing times can influence the overall duration.
Can I get a mortgage if I have a less-than-perfect credit score?
Yes, some mortgage brokers specialise in assisting clients with varying credit histories. They can explore available options and provide guidance on improving your creditworthiness.
What is Lenders Mortgage Insurance?
In essence, Lenders Mortgage Insurance (LMI) enables you to buy a property with a reduced deposit.
LMI serves as a safeguard for the lender (not the borrower) in the event of your default and the subsequent sale of the property at a price lower than the remaining loan balance.
Borrowers are responsible for LMI premiums when the borrowed amount exceeds a specified percentage. While some lenders permit you to include the LMI premium in your home loan, others mandate upfront payment.
A Word From Our Clients
Your investment porfolio is about to take off
