Redwood Advisory SMSF Specialists
SMSF Borrowing to invest is not for everyone but it can accelerate the growth of your SMSF assets allowing you to maximise your investment returns and reach your retirement goals earlier.
Borrowing in a SMSF is allowed subject to certain conditions, including;
- The borrowing is in the name of the SMSF trustee
- The borrowing is in relation to an asset that the SMSF trustee is allowed to acquire
- The asset is held by a separate trustee (security trustee)
- The borrowing is limited recourse i.e. the lender only has access to the underlying asset if things go bad
- Provided all payments have been paid to the lender the security trustee will transfer all legal ownership to the smsf trustee on maturity
However this can be a complicated process and you should always receive advice before deciding on this a course of action. Redwood Advisory makes SMSF borrowing to invest in property easy, refer to https://redwoodadvisory.com.au/smsf-property-investment/ for more information on the structure required and our competitive fees.
The benefits of SMSF borrowing include:
Borrowing within a SMSF allows members to accelerate their wealth accumulation through making loan repayments with pre-tax contributions. Investment income is concessionally taxed and there is no CGT if the asset in sold in retirement.
For more information on SMSF borrowing please visit www.redwoodadvisory.com.au or call us on 1300 790 110
Article Disclaimer: This article should not be considered personal financial advice as it is intended to provide general information only. The article has been prepared by Redwood Advisory Pty Ltd without taking into account your personal objectives, financial situations or needs.
By Ivan Filipovic – Director