Assisting clients by providing top level advice that helps with making sound decisions.
Super Funds Loan
Many Australians have a significant amount of money invested in superannuation. But is that money invested in the best way possible? Due to changes in laws, more and more people are now establishing their own self-managed super funds (SMSFs) and many are taking advantage of the ability to use superfund money to purchase real estate.
At Link Mortgage Services, we assist clients by providing top level advice that helps with making sound decisions in relation to super fund loans. These days, an investor may have just as much choice and control over investment properties inside as outside a superannuation fund. This amount of choice may often lead to confusion, so that’s why it’s wise to enlist the help of experts to help navigate the choices on offer.
Many people would like to be able to include direct investments in real estate in their super fund’s investment portfolio and this is not only possible, but a good strategy to ensuring wealth creation over time.
Super fund loans are:
- Suitable for people who already have a Self-Managed Super Fund (SMSF) or are planning to establish a SMSF
- Enable people with a SMSF to borrow and invest in real estate which is residential or a non-specialised commercial investment property. This strategy helps to diversify your investment portfolio and accelerate wealth creation.
- A limited recourse loan, so other assets within your SMSF are protected.
Tax Benefits may include:
- Maximum of 15% tax on rental income
- Tax deductions (via salary sacrifice) for loan repayments of the principal are a possibility
- A maximum 10% capital gains tax on sale of property if held for at least 12 months (and potentially nil if sold during the pension phase).
- Unlike other property investments, as a business owner you may ‘sell’ the business premises you own into your SMSF
- Interest costs are tax deductible and may potentially reduce the 15% contributions tax to nil
- For small business owners, additional tax concessions and asset protection from creditors may also be achieved