Do you Qualify to buy property with your superannuation?

1.1M Australians have taken control of their super. More than 136k Investment properties have been bought using super funds.

What You Can Expect:

  • Have your super work for you
  • ​Tax effective
  • Diversify your super investments
  • Access through early retirement

Quick Check

Enter your details

We will grab a few basic details for us to assess whether you will qualify to take control of your own super and purchase an investment property.

Get confirmation

Our experienced team of experts will then review if you qualify to use your super to buy property. If qualified, our team will contact you to confirm details and explain the process moving forward.

Enjoy your super working for you

Time to reward yourself with a cold beverage now that you have used your super as a tool to buy an investment property.

What our customers have had to say…

Find out if you're eligible

Frequently Asked Question

Frequently Asked Questions (FAQ) pages contain a list of commonly asked questions and answers on a website about topics such as Loans, Finance, Accounting, and SMSF.

Using superannuation (or “super” for short) to invest in property can have a number of potential benefits. Some of the main advantages include: 
  • Tax benefits: Super funds are generally taxed at a lower rate than other types of investment vehicles, which can make it more tax-efficient to invest in property through your super fund. 
  • Diversification: Investing in property through your super fund can help diversify your overall investment portfolio, which can reduce the overall risk. 
  • Leverage: Some self-managed super funds (SMSF) can borrow money to invest in property, which allows you to invest in property with a smaller amount of money. However, you need to be mindful of the regulations, this option is complex and might come with additional legal and accounting responsibilities.
It is important to remember that investing in property through your super fund can be a complex and risky strategy. It may not be suitable for everyone, and you should seek professional advice from a financial advisor, accountant, or lawyer before proceeding.
Self-Managed Super Funds (SMSFs) can borrow money to invest in property, but there are certain rules and regulations that must be followed. This is known as “limited recourse borrowing” or “borrowing within super.”  In order to borrow money within an SMSF, the fund must have a specific type of trust deed that allows borrowing, and the borrowing must be secured by a registered mortgage over a single acquirable asset. The asset must also be held in a separate trust, known as a “bare trust,” until the loan is repaid in full. 
A Limited Recourse Borrowing Arrangement (LRBA) is a type of financing structure used by self-managed superannuation funds (SMSFs) in Australia. It is a way for SMSFs to borrow money to purchase assets such as property, shares or other investments, while limiting the risks for the trustees of the fund.  In an LRBA, the SMSF establishes a trust over the asset being purchased. The trust is the legal owner of the asset, and the SMSF is the beneficial owner. The lender provides the funds to the trust to purchase the asset, and the trust provides security for the loan in the form of the asset itself. This structure allows the SMSF to access the asset and any income generated by it, while the lender’s recourse for repayment of the loan is limited to the asset held in trust.  Because of the limited recourse nature of the loan, LRBAs are considered a form of non-recourse debt, meaning that the lender’s rights to the collateral (the assets purchased with the borrowed funds) are restricted, and the lender cannot seize other assets of the SMSF to repay the loan if the SMSF default. It gives a bit more security to the assets of the fund and the members of the fund.  However, this also means that the SMSF trustees are required to be extra careful with their borrowing, as any default on the loan will result in a loss of the assets held in trust. This is why there are strict regulations in place for LRBAs in Australia, such as the requirement for the SMSF trustees to receive independent legal and financial advice before entering into the arrangement, as well as ongoing compliance requirements to ensure that the SMSF remains solvent and able to meet its obligations under the loan.
A bare trust, also known as a custodian trust or nominee trust, is a type of trust that is commonly used in the context of self-managed superannuation funds (SMSFs). The role of a bare trust in an SMSF is to hold assets on behalf of the SMSF, with the trustees of the SMSF being the beneficiaries of the trust.  The trustees of an SMSF are responsible for managing the assets of the fund in accordance with the fund’s trust deed and the laws and regulations that govern SMSFs. However, they may not always have the expertise or capacity to hold certain types of assets, such as property or shares, directly in their own names. This is where a bare trust comes in.  A bare trust allows the trustees of an SMSF to have the assets held by a separate legal entity, the bare trust, on their behalf. The trustees of the SMSF are the beneficiaries of the bare trust, which means that they have the right to the assets held in the trust. The trustees also have the power to direct the trustee of the bare trust on how to manage the assets.  It is common practice that the SMSF trustee would appoint a professional trustee as a trustee of the bare trust. So the assets are held by the professional trustee on behalf of the SMSF trustee and this is the way to ensure that the assets are held in compliance with regulatory requirements. The bare trust is not a separate tax entity, so the assets and income of the trust are treated as if they are owned directly by the SMSF trustees.  In summary, a bare trust can provide several benefits in the context of an SMSF, including allowing the trustees to hold certain types of assets and providing an additional layer of protection against potential legal liabilities.

Success Stories

My success stories are a collection of the achievements I’ve attained throughout my life. They are the milestones that I’ve worked tirelessly to reach, and they are a testament to the hard work, dedication, and perseverance that have helped me to overcome challenges and accomplish my goals.

Positive Cashflow Property in SMSF
22Nov

Positive Cashflow Property in SMSF

Bought this strong cash flow positive property in SMSF earlier this year We concluded purchase of this amazing block of 3 units for SMSF clients. 2 couples joined hands to form SMSF to buy this property. It was a combination of self employed and salary & wages employees. Challenges: Being a block of 3 units […]

Learn more
Strong capital growth Investment Property in SMSF
22Nov

Strong capital growth Investment Property in SMSF

Self employed client buy following property in SMSF We supported the client’s purchasing investment property in SMSF in a challenging situation. Client bought this in a capital growth area with the aim to grow wealth for retirement. Challenges The client had only 1 yr.’s super contributions which typically is typically a no go zone for self-employed […]

Learn more

Unlock the Secrets to Success with Our Free E-Book!

Fill your details and Get a free E-book.

Your information is in safe hands.

Amit has developed himself to be an end to end resource. Over last 13 years, he has gather knowledge and experience in diverse industries.

MENU

Contact

SOCIAL

Linkedin-in Facebook-f Instagram

Stay in Touch with us

We are located in the key Victorian hub of SME and startups, in south east Melbourne – City of Monash. This is to ensure we are in the middle of future businesses and individual success.

All rights owned by Amit Aggarwal 2020

Thank you, we'll chat soon

We will be in touch with you shortly to discuss further.

Visit Website
Life beyond numbers - Amit Aggarwal