Self-Managed Super Fund (SMSF)
Invest in Property through your Super

Did you know you can use your Self-Managed Super Fund (SMSF) to invest in residential or commercial property? With the right SMSF loan, you can build wealth for your retirement by using your superannuation to purchase investment properties. At Ambition, we specialize in helping clients access SMSF loans and make the most of their superannuation fund to invest in property, all while complying with the rules and regulations.

Why Choose Ambition for Your SMSF Loan?

• Expert Advice: SMSF lending is complex, and we’re here to guide you through every step, ensuring you understand the process and comply with regulations.
• Tailored Loan Solutions: We offer a range of SMSF loan options, from residential to commercial property, helping you find the right loan to meet your investment goals.
• Competitive Rates: With access to multiple lenders, we’ll help you secure the most competitive interest rates and loan terms.
• Comprehensive Support: From loan application to settlement, we’ll support you with the paperwork and ensure everything is in place for your property investment.

What is an SMSF Loan?

An SMSF Loan is a loan used by a Self-Managed Super Fund (SMSF) to purchase property, typically for investment purposes. This is an attractive option for SMSF trustees who want to diversify their portfolio by adding property assets. SMSF loans are governed by strict rules, and it’s essential to ensure your SMSF complies with regulations set by the Australian Taxation Office (ATO).

SMSF loans can be used to purchase:

• Residential Properties: Invest in residential property to generate rental income and capital growth within your SMSF.
• Commercial Properties: Your SMSF can also purchase commercial property, including office buildings, retail spaces, or warehouses, to add to your fund’s portfolio.

How Ambition Can Help You Secure an SMSF Loan

At Ambition, we make the process of securing an SMSF loan straightforward and stress-free. Here’s how we can help:

• Review Your SMSF Setup: We’ll start by reviewing the structure of your SMSF to ensure it’s set up correctly for property investment and eligible for a loan.
• Loan Pre-Approval: We’ll assist with getting pre-approval for your SMSF loan, so you know exactly how much you can borrow and what properties are within your budget.
• Property Selection & Compliance: Whether you’re looking at residential or commercial properties, we’ll guide you through selecting the right property that complies with SMSF borrowing rules.
• Loan Structuring: SMSF loans have specific requirements, such as the use of a “Limited Recourse Borrowing Arrangement” (LRBA). We’ll ensure your loan is structured properly to meet these requirements and protect your SMSF assets.
• Ongoing Support: Throughout the process, from application to settlement, we provide full support and guidance to ensure a smooth transaction. We’ll also be there after settlement for ongoing advice about your loan and SMSF investment strategy.

Benefits of an SMSF Loan

• Leverage Your Super: An SMSF loan allows you to use the funds in your SMSF to invest in property, potentially growing your retirement wealth faster than traditional investment options.
• Diversify Your Portfolio: Adding property to your SMSF portfolio can help spread your investment risk and provide more stability for your superannuation.
• Tax Benefits: Property within your SMSF may be eligible for concessional tax rates on income and capital gains, which could result in tax advantages.
• Long-Term Growth: Property has historically been a stable long-term investment, offering potential for capital growth and rental income to grow your super.

Types of SMSF Loans

There are different types of SMSF loans to suit various investment strategies. At Ambition, we’ll help you choose the right loan structure for your situation:

• Residential SMSF Loans: For purchasing residential property to generate rental income or capital gains. These loans often have more favourable interest rates and terms.
• Commercial SMSF Loans: For buying commercial properties, such as office buildings, retail spaces, or industrial properties. These loans may have different terms and require larger deposits compared to residential loans.
• Limited Recourse Borrowing Arrangement (LRBA): SMSF loans are typically structured through an LRBA, meaning the lender’s recourse is limited to the asset purchased by the loan (i.e., the property). This protects your other SMSF assets in case of default.

Frequently Asked Questions

• Can I use my SMSF to buy property? Yes! An SMSF can purchase property, either residential or commercial, but it must be for investment purposes, and the property must comply with strict SMSF borrowing rules.

• What is a Limited Recourse Borrowing Arrangement (LRBA)? An LRBA is a specific type of borrowing arrangement used in SMSF property loans. It means that the lender’s recourse is limited to the property purchased, meaning other SMSF assets are protected in case of default.

• How much can I borrow with an SMSF loan? The amount you can borrow depends on your SMSF’s available funds and the value of the property. Typically, lenders require a 20-30% deposit for an SMSF property loan. We’ll help you assess your borrowing capacity and find a suitable loan.

• Are there any restrictions on the type of property I can buy with an SMSF loan? Yes, there are rules around the types of properties you can buy. For example, you cannot use SMSF funds to buy property for personal use, and the property must generate a return for the fund. We’ll help you navigate these rules and ensure your investment is compliant.

• Can I rent the property to family members or myself? No. The property must be rented at market rates to tenants who are not related parties to the SMSF. Renting to family members or using the property personally violates SMSF rules.

Start Building Your SMSF Property Portfolio with Ambition

If you’re ready to invest in property through your SMSF, Ambition is here to help you secure the right SMSF loan for your needs.

Our team will provide expert advice, support, and assistance to ensure your property investment is successful and compliant with all regulations. 

Contact us today to learn more about SMSF loans and how we can help you build wealth for your retirement!