When Considering Property Investments

If you are looking for an investment opportunity or a way to increase your savings for retirement, using your Self-Managed Super Fund (SMSF) to purchase an investment property might be the solution for you. At SW Capital, we work with everyday people, like yourself,  to utilise their super to purchase property through SMSF lending.   

Investing in property through a SMSF in Australia can be a complex process, however with the right guidance from licensed financial advisers, accountants, and one of our SW Capital SMSF lending specialists, you can get the insight you need to determine if SMSF investing is right for you and how to go about purchasing an investment property using your super.  

The benefits of using your SMSF to purchase an investment property are clear, whether it’s tax advantages, diversifying your investment portfolio, or generating a higher return for your retirement, SMSF investing can be a great way to grow your wealth for the future.  

Once you have determined that SMSF investing is the right move for you, you will need to set up and establish an SMSF if you don’t already have one. It’s important that your SMSF complies with the Australian Taxation Office (ATO and other governing bodies, rules, and regulations. You’ll need to ensure that your SMSF has enough funds to make the investment and that you have a written strategy that includes property investment. For support setting your SMSF and further guidance, speak to one of our SW Capital representatives and our network of financial professionals.  

Next, you will need to identify a property that meets your investment objectives and aligns with your investment strategy. You’ll also need to ensure that the property is a complaint asset class and that it meets the SMSF borrowing rules. At SW Capital we have property experts that you can engage to assist in this process. 

 If you don’t have enough funds in your SMSF to purchase the property outright, you may need to arrange finance. SMSFs can borrow money to invest in property, but strict rules apply, so it’s important to seek professional advice and ensure that you comply with all the regulations. If you require finance you will need to establish a separate Corporate Trustee and ‘Custodian Trust’ that will own the property, whilst the SMSF will own the debt.  This is where financial advice is critical.  

Before making an offer on a property, you’ll need to conduct due diligence to ensure that the property meets your investment criteria. This may involve engaging a qualified valuer to assess the property’s value, conducting a building and pest inspection, and researching the local property market.    

Once you’re satisfied with your due diligence, you can make an offer on the property. Where finance is required the contract will need to be made in the name of the Corporate Trustee as trustee for your Custodian Trust – your finance specialist will guide you through this process. 

Finally, if your offer is accepted, you’ll need to complete the purchase of the property. This may involve paying a deposit, finalising finance, and arranging settlement.  

You can seek advice at any stage through SW Capital and connect with our trusted referral partners to support you every step of the way.  

For more information about what SW Capital offers and how you can purchase property using your super head to https://swbrokerage.com.au/sw-capital/