We can help you use the money in your Self-Managed Superannuation Fund to buy residential and commercial property
Many hard working professionals misunderstand or fail to realise the ample benefits of an SMSF loan within their self managed super fund. Yelland Property Loans is well versed in this area and together with your financial advisor and/or accountant, can lay out how this plan of action will benefit you and your long term financial goals.
To further assist in your SMSF journey, check the Our Partners page to learn more about their services and our preferred network of experts we work with at AWS Financial Planning, Yelland Consulting, Crest Accountants and JMV Law.
Joan wanted a wealth building plan to help her set aside funds for a large nest egg for retirement. She had a SMSF with $200,000 and used the money to borrow extra funds to secure a residential investment property. Using a variable rate loan with a 7.80%p.a. interest rate, Joan borrowed $300,000 with an LVR of 80 per cent. The deposit is partly covered by some of Joan's SMSF funds, while the balance is borrowed money.
This allowed her to buy a property for $475,000, bringing the total cost, including stamp duty and other fees, to $500,000. Joan then rented the property out at $500 per week, giving her an annual rental stream of $26,000. Using money earned from the rent and other income, Joan was able to meet her home loan repayments and used SMSF money to cover repairs to the property.
Keeping an eye on market rates, Joan can increase the rent of her property while it grows in value over time. As a result, Joan can earn a steady stream of rental income and re-sell the property in the future potentially for a higher amount.
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