Are you thinking of buying  a property through your self managed super fund?

The ATO has recently alowes Super Funds to buy property and actually borrow funds to partly fund the purchase.  This sounds great but there are several aspects that are vital to consider before you go ahead with this.

1.   Legal documentation is required in the setup of a loan and it is far more onerous than a normal funding agreement.

2.   You cannot occupy or have any benefit from a super fund property at any time. This compares to a personally owned property     that you may rent out and then occupy for a period and then rent out again.  If you use or occupy a super fund property, the ATO would deem the super fund to be non compliant and the top marginal rate applies. The use extends to your entire family including extended family.

3.   The gearing usually provided by banks is around 50 %, compared to 80% and 90% in your individual capacity.

Record keeping has to be far more comprehensive and up to date due to the ATO super fund auditing requirement. we can arrange most of the elements for you. We have a range of Mortgage loans, excellent lawyers and conveyancers as well as super fund auditors. We even have alliances with some property location consultants if required.

Give us a call now on  9832 0900 to arrange a free, no obligation 30 min consultation to discuss your situation over a hot cuppa.