With self-managed super funds (SMSFs) on the rise, more Australians are choosing to invest their retirement savings into property than ever before. With the right guidance and support, brokers can unlock more options for their SMSF clients and grow their own business.
For brokers, this brings the opportunity to tap into a growing market and diversify their client base. And for those with existing clients who are looking for SMSF solutions, there’s potential to build stronger long-term relationships and increase client retention.
While SMSF legislation prevents residential property investors from living in their SMSF properties, or deriving any personal benefit from them, the same is not true for commercial property.
Many business owners buy their commercial premises through their SMSF and rent them back to themselves.
This lets them tap into the tax benefits of SMSF property investment while providing greater control and stability over their business premises.
With their premises owned and paid off by their super fund, they can also free up cash flow and use it to reinvest in the business or pay off their personal mortgage.
Look for a lender that offers commercial and residential SMSF property loans, with alt-doc and full-doc options to give borrowers more options to prove income.
Lending to SMSFs is complex and highly regulated. And non-compliance can come with hefty penalties. Because of the strict legislation around SMSF borrowing, there aren’t many SMSF mortgages available on the market.
Because SMSF lending can be complicated, it’s a good idea to partner with an experienced lender like Assetline Capital that offers a high level of support and can guide you and your clients through the process of getting an SMSF loan.
When SMSFs invest in commercial or residential property, it’s purchased by the fund and repaid through rental income and superannuation contributions.
If you’re keen to diversify into SMSF property solutions, or you have clients currently looking to invest in commercial or residential property through their super fund, we can help. Assetline Capital’s SMSF Horizon Mortgages offer up to 30-year terms, full and alt-doc options and can often cater to complex portfolio structures and diverse income streams.
