SELF MANAGED SUPER FUND LOANS

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A self managed super fund loan (SMSF) assists with the acquisition of eligible income producing property.

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The Superannuation Industry Supervision Act (SIS ACT) legislation was amended in 2007 to allow SMSFs to borrow money, as long as an acceptable structure was utilised and if the asset was producing income.

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An SMSF facility is a ‘limited recourse’ loan.  This means the lender cannot touch any of the SMSF’s assets, other than the property held as security. Most lenders will lend between 70 and 80% of the property value, with loan terms usually between 20 and 30 years.  These figures can vary, depending on the asset being purchased.

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There are restrictions to SMSF finance facilities, as well as many key benefits.  It’s best to speak with your financial adviser and accountant to ensure this is consistent with your SMSF investment strategy.

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Keywest Finance has access to several lenders which specialise in this sector.  Please contact us to find out more.