Property buying has become a very tedious task lately. It involves numerous and complex procedures, Applying and securing a home loan is not hassle free job anymore. Considering the rising real estate prices all around the world, investment in the field requires proper planning and backing of adequate funds. Therefore, an investor seeks services of a fund that is secure in its structure and helps in creating wealth covering most aspects of risks involved.
The best solution, therefore, is SMSF home loans. This type of loan provides an ideal solution to all those who wish to buy homes, create wealth and have a strong safeguard against economic depression, if any. With the help of SMSF loans, an investor can:
- Gear into real estate property in a very effective manner.
- Invest effectively in the asset class suiting best to his requirements.
- Plan his retirement on his own terms, really!
Self managed super fund loans basics
SMSF loans are an exclusive lending facility that enables a borrower to use his pre-existing SMSF to borrow, invest or refinance residential investment property in commercial properties, giving direct access to real estate property assets. The only obligatory stipulation in this case is to have a well pre-established and compliant SMSF.
SMSF home loans can help; a lot
- The foremost advantage of SMSF home loan is that it provides luxury of acquiring real estate property worth more than the value of available funds in the kitty to the investor, wishing to buy a residential property with a loan.
- Chances of non-payment reduce by a significant margin as SMSF home loan continues to remain safe even in strained economic conditions.
- The entire process of self managed super fund loans is highly beneficial as total tax liabilities can be significantly reduced. The return on investment, therefore, is huge in these home loans.
- The interest expenses can be claimed as tax deductions by the SMSF.
There are many players in the market providing home loan service through SMSF. The requirements and rules associated with SMSF are hassle free and a client can easily comprehend the documentation involved in the procedure. It is made sure that the client obtains highest level of guidance and service. It is a continuous procedure and constant support is needed even post purchase of loan.
Who can borrow the SMSF loans?
- Residential property investors
- Business owners
- Established SMSF holders
- Investors seeking tax effective structure.
The general process:
- Establish or review SMSF
- Establish the property trust
- Acquire loan sanction
- Contracts exchanged
- Loan disbursed and settlement
Proper planning with a sound strategy is required to set up a customized SMSF. It is very important to keep track of the latest developments in the field regularly. These loans have provided a sigh of relief to the real estate investors and provided a super solution to home loan buyers. It has become a very reliable and efficient source of funding for the investors. The SMSF market is growing very fast and attracting lots of eyeballs with each passing day from the investors worldwide. Considering the rate of growth of these funds, the day is not far when these funds would be a market leader in the loan business.