Borrowing Funds From Your Superannuation Is Easier Now Than Ever, Experts Say
Announcement posted by Origin Projects - Land & New Homes in WA 03 Feb 2014
Developers of house and land packages and turnkey homes in Perth reveal how you can easily buy a property with your super.
Perth, WA, 3 February, 2014 - Travis Kell, Development Manager of 4Land Property Group in Joondalup, encourages those who are keen on investing in commercial or residential property to take a look at an ‘alternate’ funding source – their Self Managed Superannuation Fund or, in short, their SMSF.
Kell says, “There has been excellent opportunity for those wanting to invest since 2007, when the Superannuation Industry Supervision (SIS) Act was amended.“ Recent changes to the SIS Act provided for SMSFs to borrow with the express purpose of funnelling funds into residential, industrial or commercial investment property.
And recently, Australian banks developed the SMSF loans in order to complement the changes to the Act.
SMSF loans basically offer 70-80% of the purchase price; the 70% typically for an individual trustee and 80% for a commercial trustee.
A spokesman for the Australian Workers Union says $75 billion worth of domestic property is being held in SMSFs and that the number of SMSFs borrowed in the past five years has tripled.
The SMSFs have had help, too. The recent plunge of the Australian dollar’s value played a part in superannuation funds to record their second-best performance in 2013.
Kell, who has accomplished a comprehensive portfolio of subdivision projects at a senior level and who is in charge of 4Land Property Group’s projects, believes using a super to invest in his company’s contemporary and comfortable new homes is a solid win for any consumer looking for an extra source of income upon retirement.
In the not so distant past, previous generations of workers would buy a home, pay off the mortgage and decide to sell the home near or at retirement age, using that particular equity to financially support their retirement lifestyle.
Even fairly recently, it used to be difficult for many Australians to buy direct property through superannuation mainly because of the rising property values.
Investing in property is certainly justifiable whether or not using super, but as with any investment, the benefits and risks should equally be weighed by trustees.
Before funnelling any funds from your SMSF into investments, it’s highly recommended to consult with financial advisers whose speciality is assisting trustees in starting and maintaining their SMSF.
Advisers also want to remind those interested in borrowing that obtaining a loan with their SMSF is different from borrowing alone individually.
As with any financing scheme, there are rules and restrictions involved in using the fund. Trustees of the fund are unable to gain from assets that the fund acquires. Also, neither trustees nor their relatives may reside in the actual home owned by the SMSF. Trustees need to meet the 'sole purpose test' of provisional retirement funds and the property in question must also not be acquired from a relation.
Rental income from the property is used to repay the loan.
Kell says, “Whether or not you’re using your super, we more than welcome investors, first time buyers, or those looking to downsize their living space! We can offer you a diverse selection of home or house and land packages to suit your needs.”
4Land Property Group, one of Perth's premier providers of land sales, believe in “land you can afford, in places you’d love to live.” Their ultimate goal is to improve the lifestyles and living conditions of those looking to buy properties in Western Australia. Their goal at hand is to create affordable, complementary land packages for anyone eager in investing in something that lasts a lifetime.
Contact them by phone on (08) 9301 4445, by e-mail at sales@4land.com.au, or view their website for more information: http://www.4land.com.au/
Kell says, “There has been excellent opportunity for those wanting to invest since 2007, when the Superannuation Industry Supervision (SIS) Act was amended.“ Recent changes to the SIS Act provided for SMSFs to borrow with the express purpose of funnelling funds into residential, industrial or commercial investment property.
And recently, Australian banks developed the SMSF loans in order to complement the changes to the Act.
SMSF loans basically offer 70-80% of the purchase price; the 70% typically for an individual trustee and 80% for a commercial trustee.
A spokesman for the Australian Workers Union says $75 billion worth of domestic property is being held in SMSFs and that the number of SMSFs borrowed in the past five years has tripled.
The SMSFs have had help, too. The recent plunge of the Australian dollar’s value played a part in superannuation funds to record their second-best performance in 2013.
Kell, who has accomplished a comprehensive portfolio of subdivision projects at a senior level and who is in charge of 4Land Property Group’s projects, believes using a super to invest in his company’s contemporary and comfortable new homes is a solid win for any consumer looking for an extra source of income upon retirement.
In the not so distant past, previous generations of workers would buy a home, pay off the mortgage and decide to sell the home near or at retirement age, using that particular equity to financially support their retirement lifestyle.
Even fairly recently, it used to be difficult for many Australians to buy direct property through superannuation mainly because of the rising property values.
Investing in property is certainly justifiable whether or not using super, but as with any investment, the benefits and risks should equally be weighed by trustees.
Before funnelling any funds from your SMSF into investments, it’s highly recommended to consult with financial advisers whose speciality is assisting trustees in starting and maintaining their SMSF.
Advisers also want to remind those interested in borrowing that obtaining a loan with their SMSF is different from borrowing alone individually.
As with any financing scheme, there are rules and restrictions involved in using the fund. Trustees of the fund are unable to gain from assets that the fund acquires. Also, neither trustees nor their relatives may reside in the actual home owned by the SMSF. Trustees need to meet the 'sole purpose test' of provisional retirement funds and the property in question must also not be acquired from a relation.
Rental income from the property is used to repay the loan.
Kell says, “Whether or not you’re using your super, we more than welcome investors, first time buyers, or those looking to downsize their living space! We can offer you a diverse selection of home or house and land packages to suit your needs.”
4Land Property Group, one of Perth's premier providers of land sales, believe in “land you can afford, in places you’d love to live.” Their ultimate goal is to improve the lifestyles and living conditions of those looking to buy properties in Western Australia. Their goal at hand is to create affordable, complementary land packages for anyone eager in investing in something that lasts a lifetime.
Contact them by phone on (08) 9301 4445, by e-mail at sales@4land.com.au, or view their website for more information: http://www.4land.com.au/