Self Managed Super » SMSF Borrowings

SMSF Borrowings

Your SMSF can make an equity contribution on a property and the remainder of the funds can be borrowed from a mortgage lender to complete the purchase. Some advantages of using a SMSF to purchase property in Australia include:

  • The fund can invest in direct residential and commercial property your SMSF can acquire property worth more than its available funds through gearing
  • Ability to own your business' real property (but not operating assets) in the super fund
  • Maximum 10% capital gains tax is payable on any capital gain if the property is sold after a minimum of 12 months and no capital gains tax is payable if sold during pension phase
  • Maximum 15% income tax on rental income
  • Your assets are secure as the mortgage lender does not have recourse to your SMSF's other assets in the event of default
  • Can be used for efficient estate planning there are a number of restrictions regarding gearing and SMSF's and we urge you to contact us before committing to any loan product or asset purchase in your SMSF.