Smsf Borrowing Rules

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The SMSF borrowing rules are quite complicated, but they can help you get more out of your SMSF. View our website to find out how these lending rules work and what they mean for your business or personal loans.

With a correctly optimized loan, a self-managed super fund, and a property type that aligns with your needs, your fund could be hundreds of thousands of dollars larger when you retire. Here are some questions you need to ask when borrowing in your super fund.

Investing in property within your SMSF can be complicated—and even more so when you choose to borrow to invest. You need a lending strategy that can work with your fund's investment strategy without getting caught out by government legislation, tax implications or fees and charges. They provide you with the information you need to make an informed decision and help navigate your lending process.

When an SMSF is setup correctly with the right lending structure there are many advantages, including:

More control over your investments.

Access to wider investment options like property.

Greater tax incentives.

The opportunity to maximise returns so that you can reach your retirement goals faster.

Lower superannuation administration fees.

If you're considering investing your super fund, the government carefully manages your money and makes sure that you can make the most of your retirement savings.

Limited recourse borrowing arrangements enable you to borrow up to $5,000 within your self-managed super fund. There are conditions that must be met on these arrangements though.

It is important that any investment you make within an SMSF like this one, is made to provide a retirement benefit to the members. It's part of your total investment strategy that covers all of your investments; not just the one company.

Plan for your retirement by using an SMSF

Source: Smsf Borrowing Rules