SMSF Strategies

SMSF Strategies for Property Investment Success

Elite Property Finance is your trusted partner for property and commercial finance solutions in Sydney. We specialise in helping self-managed super funds (SMSFs) obtain loans to invest in property. We have a team of experienced professionals who can help you through the entire process, from setting up your SMSF to obtaining a loan and managing your investment property.

Maximising SMSF Potential

Elite Property Finance is a leading expert in SMSF strategies. We can help you understand how SMSF loans work and how they can help you achieve your property investment goals.

SMSFs can borrow money to invest in property, but there are limits on the amount that can be borrowed. Lenders will typically lend up to 80% of the value of a residential property and 70% of the value of a commercial property.

Diverse Income Sources for Loan Repayment

SMSF loan repayment can be serviced by any combination of rental income, superannuation contributions and additional super contributions.

Rental income: 80% of the rental income received by the Superannuation fund from the property of the property.
Superannuation Contributions: 80% of regular contributions (current or proposed) to the Superannuation Fund by the beneficiaries of that SMSF. Note that most lenders will not accept this if the member is less than 5 years away from the retirement age. If you can show that the loan is to be repaid by the retirement age then the lender will accept this.
Additional Super Contributions: 80% of the additional contributions will be used. However, in preparation for your application, we will need to show the bank your full financial position. For obvious reasons, the bank will need to know that you can service your current loans if you were to make additional repayments to the SMSF.

FAQs: Navigating SMSF Strategies

How much does it cost to set up a SMSF?

The cost of setting up a SMSF will vary depending on the accountant you use, but you should budget between $2,000 and $4,000.
How much deposit do I need for an SMSF?

You will need at least 20% for residential properties and 30% for commercial properties plus associated purchase costs, such as government and lender fees (usually around 5%).
Can I use my existing super to contribute to the purchase of the SMSF property?

Yes, you can use the money in your existing super to make up for the 20% required for the purchase and SMSF loan.
Who pays all the outgoings of the SMSF?

The SMSF (more specifically its beneficiaries) will need to pay all the outgoings associated with the property, such as mortgage repayments, lender fees and charges, council rates, strata fees and water charges, real estate property costs and insurance premiums.

Who are the Trustees?

The trustee can be either an individual or a trustee company. All members are required to be either a trustee or directors of the trustee company.
What are the responsibilities of the Trustees?

As a trustee, you must lodge a ‘SMSF Annual Return’ for the fund and pay an annual supervisory levy to the ATO.
Are constructions or development loans available on SMSF?

No, construction or development loans are not available on SMSFs, neither are borrowed funds for renovations. However, the SMSF can pay for renovations out of its own funds.