SMSF Property Finance

SMSF finance — Universal Finance Corporation

While many Australians set up a self-managed super fund (SMSF) simply to prepare for retirement, others seek to maximise its potential by investing in property. Through SMSF property finance, you can expand your portfolio and make your mark in the property market. 


Discover how Universal Finance Corporation can help you become a property investor with an SMSF loan.


What you need to know about SMSF property loans 


Unlike a retail super fund, an SMSF is a private superannuation fund managed by its members, the trustees. Many Australians opt for these super funds, as SMSFs offer greater control over investment choices, including property. 


When it comes to SMSF property loans, there are specialised borrowing arrangements available that allow the fund to purchase residential or commercial properties. Known as limited recourse borrowing arrangements (LRBAs), these SMSF loans have specific rules to protect the fund's assets and prevent a lender from repossessing them should a borrower default on their repayments.


As many regulations and compliance requirements are associated with SMSF property financing, it is highly recommended that you work with an experienced mortgage broker specialising in this area.


Partner with Universal Finance Corporation to find the right SMSF loan


Working with Universal Finance Corporation on your search for the right SMSF loan means simplifying your journey to property ownership. As a leading broker, we have access to a wide pool of lenders specialising in SMSF property loans. Our team of brokers compares different loan products, interest rates and terms to find the most competitive and suitable options for your goals.


We can also help you navigate the complex borrowing rules surrounding SMSFs and ensure that the loan structure complies with superannuation regulations. This also involves preparing your application and providing ongoing tailored guidance that saves you the time and effort of finding the most competitive offer.


Give us a call today to get started 


Take your SMSF further and break into the property market with Universal Finance Corporation. Give us a call at (02) 9558 9666 or submit an online enquiry form to get started.



FAQs

  • What are the setup and ongoing costs associated with an SMSF?

    Setting up a self-managed super fund (SMSF) involves costs such as establishment fees, legal and audit fees and initial investment setup charges, which can range from $1,000 to $3,000. Ongoing costs include annual audit fees, accounting and tax return fees, administration charges and investment-related expenses, typically totalling $2,000 to $5,000 annually. Of course, these costs can vary based on the fund's complexity and service providers used.

  • What are the borrowing rules for SMSF loans?

    Given the complexity of SMSFs, there are specific rules that must be followed when acquiring SMSF property financing. SMSF loans must follow limited recourse borrowing arrangements (LRBAs) rules whereby the loan can only be used to purchase a single acquirable asset, like residential property, held in a separate trust. 


    The property must also generate rental income or be used for investment purposes, not for personal use. The lender's claim is also limited to the property itself, ensuring the protection of any other assets within your SMSF. 


  • What investment options are available to an SMSF?

    An SMSF offers diverse investment options, including shares, bonds, managed funds, cash and term deposits. SMSF property financing is also popular, allowing the SMSF to purchase residential or commercial properties. Limited recourse borrowing arrangements (LRBAs) enable the SMSF to borrow funds for property investments, enhancing a borrower’s investment portfolio while adhering to the fund’s strict borrowing and compliance rules.

  • How do contributions and withdrawals work in an SMSF?

    Contributions can be made by members and their employers in an SMSF, subject to annual caps, and can be in the form of cash or assets. Withdrawals, or benefit payments, are generally allowed when members reach retirement age or meet specific conditions of release. Following superannuation regulations and the SMSF's trust deed, withdrawals can be taken as a lump sum or pension.

  • What are the trustee responsibilities and compliance requirements for an SMSF?

    Trustees of an SMSF are responsible for managing the fund according to its trust deed and superannuation laws. Their duties include maintaining records, preparing financial statements, lodging tax returns and conducting annual audits. Trustees must also ensure investments comply with the fund’s investment strategy and are to provide retirement benefits.