SMSF - Self Managed Super Fund Loans
One of the main benefits of a SMSF is having access to many investment opportunities and coupled with a high degree of control. You can invest in:
Residential Property
Commercial Property
Term deposits
Direct Shares
Investment Flexibility
SMSF members have great flexibility to acquire and sell investments, with having a more hands on investment.
When market conditions change you can quickly respond in adjusting the SMSF portfolio.
Pool together your super
Another benefit allows an SMSF the ability to pool resources with other members.
This increased pool gives access to investment opportunities that may not otherwise be available.
Business Owners
Commercial SMSF loan can be used to purchase properties for personal business use,
Limitations on SMSF loans
Can only borrow funds to purchase a single acquirable asset at a time.
Once the loan has been drawn down, no increase will be allowed and no further borrowings can be made using that asset.
SMSF loans are not available for progressive draw construction loans.
Cannot purchase vacant land.
Cannot be used to purchase residential property for personal use.
Lenders requirements to finance - Asset tests & Liquidity tests
Asset Test
The asset test is the minimum amount of liquid assets held in the SMSF at the time of application.
Each lender is different but this requirement is usually a minimum of $150,000.
Liquidity Test
The liquidity test is the lenders requirement that allows for liquid funds to be retained to cover any contingencies.
The liquidity test varies between lenders and can be from 0 to 10% of the loan.