With an SMSF, you will have control over the asset allocation of your super fund. This will give you the opportunity to grow your revenue with asset investments across a number of different classes, including property. Historical property value increases show that this could be a great way to grow your nest egg for retirement.
As the manager of your SMSF, you are able to make borrowing decisions. This enables the borrowing of money via loans registered to the SMSF — loans that are ring fenced for purchasing assets that grow the value of the super.
There are a number of fees and charges associated with running a SMSF fund. You will need to be prepared to meet these additional costs to optimise your growth of revenue for retirement.
You and other fund members will not be permitted to reside in any of the properties owned by your SMSF, including all residential and commercial properties. This includes properties purchased as a result of SMSF borrowing.
No, most of the big bank lenders do not offer SMSF loans. However, we have great relationships with the lenders who provide these products.
A self managed super fund is a kind of superannuation fund which you can use to set aside money you will later use to support yourself and your family during retirement.
With an SMSF, you will be managing this fund yourself, adding money to the fund as you see fit and taking care of the fund’s investments and insurance. This is the key point of difference between an SMSF and a retail or industry super fund.
Anyone can set up an SMSF, but the responsibilities and duties of operating the fund mean it is not suitable for everyone. Working with a financial planner or accountant can help you understand if this is the best decision for your situation.
From 2007 onwards, SMSF managers have been permitted to take out loans registered to the super fund, making it easier to purchase assets and grow the value of the fund. These self managed super fund loans are only provided if strict rules and regulations are adhered to, and SMSF managers should gain professional advice and guidance before they adopt this approach.
