Self Managed Superfund Loans
Many people with funds in superannuation have been enjoying the freedom of choosing how those funds are invested through self managed super funds. With the advent of the self managed superfund, managing your retirement funds is now fairly common as people shun large corporate public funds and opt to control their nest egg themselves.
There are significant rules and regulations in place to govern the management of your superannuation in order to protect your retirement savings. Until recently for instance it was not possible for a superfund to borrow funds for investment purposes. This ban has now been lifted and superfunds, including self managed superfunds, are able to borrow money to directly purchase real estate or shares in order to further the investment portfolio of the fund.
There are still some restrictions in place in structuring these transactions for example; specific entities need to be established in order to facilitate the borrowing/ownership of the assets. Plus there are complex issues involved in relation to stamp duty and capital gain tax and the loan products available. So it is important to speak to expert legal and accounting advisers as well as to mortgage brokers experienced in these sorts of scenarios, as we are.
The benefits of using your superannuation funds to invest with can be great. Wouldn’t you like to be paying off an investment property with the 9% super payments your employer makes on your behalf? Please give us a call to talk over your situation and to see if you could be enjoying the benefits of investing with a self managed superfund loan.