SMSF Loans

A Self-Managed Super Fund (SMSF) is an investment structure that provides flexibility and control over your retirement savings. If you’re looking to invest in property through your SMSF, whether residential or commercial property, Greenfield Finance can assist by helping you access the right loan options, based on the recommendations made by your financial advisors.

While we don’t provide financial or tax advice, we support you in acting on the strategies suggested by your advisors, ensuring the process is seamless and meets all compliance requirements. Please seek professional advice for tax matters to ensure the strategy aligns with your overall financial and retirement goals.

What is an SMSF Loan?

An SMSF loan allows your self-managed super fund to borrow money to purchase property, whether it’s for residential or commercial investment, or for business use if you’re a business owner. The loan typically involves a limited recourse borrowing arrangement (LRBA), meaning the lender’s claim is limited to the property purchased through the SMSF.

• Residential Property Investment: Use your SMSF to invest in residential properties, generating rental income that can benefit your super fund.
   
• Commercial Property Investment: If you’re interested in commercial real estate, your SMSF can purchase commercial properties for investment purposes.
   
• Business Property Investment: For business owners, your SMSF can be used to purchase property for business use, providing benefits for both your business and retirement fund.
  

Why Consider an SMSF Loan for Property Investment?

• Dual Benefits: Purchasing property through your SMSF can help you grow your superannuation while potentially earning rental income and capital gains.
   
• Tax Advantages: SMSF property investments can offer potential tax benefits, including concessional tax rates on rental income and capital gains. Please seek professional advice for tax-related matters to ensure the investment structure works in your best interests.
   
• Control Over Your Investment: As the trustee of your SMSF, you have the ability to decide where to invest, whether in residential or commercial property.
   
• Diversify Your Super Fund: Adding property to your SMSF can provide diversification, offering a mix of assets beyond traditional investment options like shares and cash.
  

Types of Properties You Can Invest in Through SMSF

• Residential Properties:
  Your SMSF can be used to purchase residential investment properties that generate rental income and grow your superannuation balance.
   
• Commercial Properties:
  Use your SMSF to invest in commercial properties like office spaces, retail buildings, or industrial properties, which can offer higher rental returns than residential properties.
   
• Business Properties (For Business Owners):
  As a business owner, you can use your SMSF to purchase property for your business operations, allowing you to invest in both your business and your superannuation.
   

How SMSF Loans Work

• Loan-to-Value Ratio (LVR): SMSF loans usually require a 30% deposit, with the typical loan-to-value ratio (LVR) around 70%, meaning you’ll need significant equity in your super fund to cover the deposit and other costs.
   
• Compliance: SMSF property investments must adhere to strict rules set by the Australian Taxation Office (ATO). While we don’t provide financial or tax advice, we ensure that the loan is structured in a way that aligns with the legal requirements.
   
• Limited Recourse Borrowing Arrangements (LRBA): SMSF loans are typically set up under an LRBA, which limits the lender’s claim to the property purchased, rather than the entire super fund.
   

How Greenfield Finance Can Help

At Greenfield Finance, we specialize in assisting clients who are looking to invest in property through their SMSF. We work closely with your financial advisors to help you access the financing needed, ensuring everything is set up in accordance with the rules and guidelines that govern SMSF loans.

• We Act on Your Advisors' Recommendations: We collaborate with your financial advisors to ensure that the loan process is in line with the strategies they’ve suggested.
   
• Access to a Range of Lenders: We help you find the best SMSF loan options available from our network of lenders.
   
• Compliance and Support: We help ensure the loan structure complies with SMSF regulations and provides the flexibility you need for your investment strategy.
   

Start Your SMSF Property Investment Journey

If you’re interested in using your SMSF to invest in property, Greenfield Finance is here to help. We’ll work with your advisors to find the right financing solution, making sure everything is in place for a successful property investment strategy.

Contact Us Today to get started and learn more about how an SMSF loan can work for you.