At Align, we specialise in helping you navigate the complexities of financing residential and commercial investment properties through your Self-Managed Super Fund (SMSF). With a dedicated team of professionals, we empower you to take control of your retirement savings and maximise your investment potential.
A Self-Managed Super Fund is a superannuation fund regulated by the Australian Taxation Office (ATO), allowing between one to four members to manage their retirement savings actively. This structure offers greater control over investment choices compared to traditional superannuation funds, making SMSFs increasingly popular among those with substantial superannuation savings and a solid understanding of financial and legal matters.
Member-Trusteed Structure: Each trustee must also be a member of the fund.
Employment Restrictions: Members cannot be employees of another member unless they are related.
Single Member Funds: If you have individual trustees, a second trustee (who does not need to be a member) must be appointed.
Borrowing through your SMSF can be a powerful tool for building wealth, but it does come with unique complexities. The process generally follows these steps:
Limited Recourse Borrowing Arrangement (LRBA): SMSFs can borrow to purchase investment properties under an LRBA, which limits the lender's recourse to the asset itself. This means that if the SMSF defaults, the lender can only claim the secured property, protecting other assets within the SMSF.
Tax Benefits: The interest paid on the loan and related expenses may be tax-deductible against rental income, providing potential gearing benefits.
Rental Income as Serviceability: Rental income from the property can be utilised to demonstrate serviceability, helping you manage loan repayments more effectively.
Navigating the world of SMSF loans can be overwhelming. Many clients remain with lenders that no longer offer competitive rates, leading to "rate creep" and unnecessary financial strain. With a focus on personalised service, we help you find the best SMSF loan structure tailored to your investment strategy.
Loan Structuring: We guide you through various loan types, whether fixed or variable rates, to find what suits your needs best.
Refinancing: If you're looking to refinance an existing SMSF loan, we can help you identify better options.
Expert Advice: With our deep knowledge of SMSF lending, we ensure you understand the intricacies and compliance requirements, reducing the risk of costly fines.
Taking control of your retirement savings has never been easier. Our team of SMSF experts is here to guide you through every step of the process.
