It has been a challenging year in 2023 for homeowners and investors, as interest rates spiked, borrowing capacity decreased and mortgage repayments skyrocketed.  However, the aspirational Australian property ownership dream remains alive and well, despite these challenges.

Looking forward to 2024, what other options are available to secure a property sooner? Self-managed Super Fund (SMSF) lending to acquire property and grow wealth has become more and more popular.

According to the SMSF quarterly statistical report September 2023, the Australian Tax Office (ATO) reported over 611,000 SMSFs and 1.1 million members of SMSFs. Total estimated assets of SMSFs are $884 billion. The top asset types held by SMSFs (by value) are: 26% listed shares, 17% term deposits and 14.4% combined value of property (commercial property 9.3% and residential property 5.1%).

There is $43 billion in residential property currently held by SMSF members in Australia.

What is a SMSF loan? A Self-managed Super Fund Loan is an investment loan, which can provide a SMSF the ability to use its funds as a deposit to purchase an investment property and borrow the remaining amount required to fund the purchase.

There are many benefits in taking out a SMSF loan, such as the loan is assessed mainly within the SMSF, which means it doesn’t impact on living expenditure. With sufficient deposit funds in the loan, the SMSF loan can pay for itself.

As a SMSF is for your retirement and does require expertise to set-up, we strongly recommend you seek advice from a financial planner and accountant who will be able to advise you on matters such as investment planning, potential financial returns, structuring of the SMSF and tax implications.

Although SMSF lending seems complex and may appear daunting, at Triple M Finance, we are here to help you through every step of the way and guide you through the SMSF loan journey.

Reach out for an initial discussion for SMSF lending.