Using a loan to fund your investments provides you with the opportunity to accelerate the growth of your portfolio by investing in assets that attract capital growth, income or both.
Purchasing real estate with an SMSF loan can provide capital growth through property appreciation and investment returns in the way of regular rental income that adequately meet your investment objectives and financial goals.
The purchase of assets with an SMSF loan is facilitated by a limited recourse borrowing arrangement (LRBA). An LRBA holds the asset in trust on behalf of the SMSF until the loan has been repaid in full. This protects the existing assets of the fund by keeping them separate to the property being used as security against the loan. If the loan is defaulted on, the lender will only have legal claim over the property that was purchased with the LRBA — so the rest of your assets are completely safe!
Borrowing to invest comes with these potential benefits:
Using borrowed funds to invest in assets can open up a wide range of long-term wealth building strategies.
We help you by:
With various loans available for residential and commercial properties, our loan experts can analyse your situation to find the best loan for your SMSF that realises your investment objectives.