SMSF Loans

Investing your Super in property

Boost your retirement plans and take over your superannuation management by purchasing investment properties using your funds as the deposit.

When you have a Self Managed Super Fund (SMSF), you have total control of where your superannuation is invested.

How does an SMSF Work?

Many Australians, preferring property as an investment, are now taking full advantage of the change and using their super as a deposit for an investment property.

There are numerous advantages associated with buying property through your SMSF. The major benefits are:

You have total control of how your superannuation is invested

  • You can obtain a loan to invest in residential or commercial property
  • You can utilise your compulsory employer contributions and rental income in order to repay your property loan
  • Pay no captial gains tax on the sale of the property after retirement
  • Pay 15% tax on rental income compared to up to 45% if property is owned outside of super
  • The SMSF tax rates are much lower than if you purchased a property from outside the superannuation environment.

How can we help you?

We provide a centralized approach in order to facilitate the set up of the SMSF, the property purchase and the funding of the loan.

  • Advice regarding any relevant investment strategy considerations and document an investment strategy for you
  • Assist with the implementation and provide you with the relevant documentation to execute the investment strategy
  • Assisting with managing contributions and withdraws, ensuring your fund has sufficient cash flow to meet its objectives
  • Ensuring that your funds are managed as per superannuation legislation

How to buy a property with SMSF?

Once the Self Managed Super Fund is set up, the family member’s superannuation can be pooled together into the SMSF.

  • We then look to organise a loan pre-approval for the purchase of real estate, whether that be residential or commercial and ensure that we structure the finance correctly
  • We’ll take the stress out of finding the right investment property. Through the combined experience of our team of research analysts, we will save you thousands of dollars and significant time in searching for the ideal investment property.
  • A property is purchased and owned by a trust until the loan is paid off. Rental income and superannuation contributions are paid into the SMSF and loan repayment and other expenses are paid out of the super fund.
  • When the property is sold, when the members retire, the proceeds will not be subject to Capital Gains tax. If it is sold before they retire, the maximum CGT is 10% if the asset is held for longer than 12 months. It does not automatically gain a 10% CGT rate.

If you would like to know if buying a property with your Superfund is an appropriate strategy for you? Please give us a call to have an obligation fee chat!

T: 1300 227 663



What’s next?

If you want to get a personal individual assessment and discuss what your options are? Contact us on 1300 227 663 or fill in our Free Assessment Form.

Get a Free Assessment

This information is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. If you decide to purchase or vary a financial product, your financial adviser and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investment. Please contact us if you want more information.’