There are several reasons why it could make sense for your customers to look into residential or commercial property as an investment option if they hold a SMSF:
- The property can be purchased using money saved within super, rather than needing to save for a deposit outside of super
- The rental income from a residential or commercial property is taxed at the concessional rate of 15%
- Expenses of owning and deriving the rental income are tax-deductible
Lower capital gains tax is paid when the property is sold. If the property is owned for more than 12 months, only two-thirds of the resulting capital gain is taxed - at the 15% tax rate
- For business owners, the SMSF can buy a business premises and the company can rent the space back (under specific conditions). This can free up cash flow and provide tax incentives
- For apartment purchases, the SMSF investor may live in the property once they retire, under specific conditions.
More than 40% of Australian mortgage brokers have submitted SMSF loans. Many target their existing customer base and use SMSF loans to access new revenue streams, while other brokers promote their SMSF loan service as a way of diversifying their loan book and business.
For brokers who have strong referral networks, or are looking to build their referral base, positioning themselves as a SMSF broker expert amongst their Accountant and Financial Planning networks is a great way to offer a broader service.
There’s often a misconception that mortgage brokers require an additional accreditation to write this type of loan, however, at Bluebay Home Loans this is not required. The process of submitting this type of loan only differs slightly to that of a residential.
A SMSF loan is an investment loan, and the features of the loan will vary based on the lender. For example, at Bluebay Home Loans, customers have access to:
- A 100% offset account
- Very competitive interest rates and fees
- Residential and Commercial security accepted
- A higher LVR than most
- Bluebay Home Loans Application fee waived
To find out more about the process or to discuss specific product features, contact Lisa Van Weelde, Business Relationship Manager at Bluebay Home Loans on 0438 924 711 or email us directly at info@bluebayhomeloans.com.au
Sources:
https://www.superguide.com.au/smsfs/smsf-statistics
https://www.brokernews.com.au/features/cover-story/diversifying-into-smsf-lrbas-272461.aspx
https://www.brokernews.com.au/features/cover-story/diversifying-into-smsf-lrbas-272461.aspx
No application fee is a current promotion and available for a limited time only for applications submitted after 1st September 2020 and before the close of business on 30th October 2020. The loan must settle prior to the close of business on 31st December 2020. This may change at any time, without notice.