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SMSF by Beyond Bank

Are you considering all the different ways to save and invest for your retirement?  Have you considered whether investing in property in a self-managed superannuation fund (“SMSF”) is right for you?  If you are thinking about this option it can be quite complex so we strongly recommend that you seek financial, tax and/or legal advice to explore whether such an investment would suit your personal circumstances and the investment strategy of your SMSF.

Buying property through an SMSF using cash from the superannuation fund and borrowing the balance using a Limited Recourse Borrowing Arrangement (“LRBA”) may provide your SMSF with the following benefits-

• Geared Returns

• Expanded investment opportunities

• Portfolio diversification opportunities

• Investment in direct property

There are risks associated with LRBA’s including -

• Increased investment risks associated with leverage

• Loan servicing/cash-flow risks

• Interest rate risk

• Investment/rental income risks

• Asset market price risks

• The requirement for adequate insurance

• Ongoing compliance issues and risk of legislative change

Buying property and borrowing in SMSFs can, at first, appear quite complex.

The friendly team at Beyond Bank have specialist bankers who can guide you through the funding complexity.  They work closely with your financial advisor, accountant and/or lawyer to make the borrowing experience as straight forward as possible and offer competitive variable and fixed rate loans.

If you’ve talked to your financial advisor and borrowing to buy property in your SMSF is right for you give Nick Bilby from Beyond Bank a call on (08) 8205 8659.  Nick is a specialist lender with the knowledge to guide you smoothly through the SMSF borrowing process.

Article prepared by Beyond Bank

 

NB The information above is for general information purposes only. It is not intended as financial or investment advice and should not be construed or relied upon as such. Before making any commitment of a financial nature you should seek advice from a qualified and registered financial adviser. This information should not be construed or relied upon as providing recommendations in relation to any financial product.