smsf home loans

SMSF Home Loans – Do this before you apply

Even though SMSF home loans use the property you are buying as collateral, that does not mean you can avoid doing some careful research before applying.  Assessing your financial circumstances is very important if you plan on getting the best loan features, structure, interest rates and loan terms.  Unfortunately, many peoplesmsf home loans simply apply for a SMSF home loan without proper preparation and wind up spending thousands of dollars more than they should over the course of the loan.

Make Sure Your Credit File is Accurate and Up to Date

Credit reports are only as good as the information provided to the reporting agency.  Here are just a few situations that can have a negative effect on your credit without your knowledge:

  • a lender uses your identifying information by mistake and places negative markers on your credit report
  • identity thieves may have taken out loans, credit cards, or even mortgages using your good name and reputation
  • a creditor fails to mark a payment you made on your account, and then reports the late marker to the credit reporting agency.

Failure to address these issues before applying for an SMSF loan can result in higher interest rates and a reduced ability to negotiate for the best terms possible. While it may take a month or two to straighten out your credit file, it is more than worth your effort.

Gauge Your Super Fund and Projected Earnings

At the current time, your Super may look stable and capable of supporting you during your retirement years.  If you take out a loan now, and then fall on hard economic times, your Super will also stop growing.  From health problems to job loss, you should always consider both positive and negative influences on your retirement fund. If you find catastrophic projections more likely than positive growth, it may be best to wait before committing to taking out loan using your Self Managed Super Fund

Decide What You Want to do With the Loan Money

Having money without a viable spending, savings, and investment plan is a sure path to ruin. It does not matter if you earned the money or borrow it in the form of an SMSF loan.  Before you apply for a loan, think about how you will spend the money, and if those plans are really worth the effort. For example, if you already own one home and have an investment property, but very little in the way of liquid capital, think twice before buying another investment property.  The last thing you will want to do is secure a piece of prime property, and then not have the funds available service the debt.

SMSF loans are a valuable tool as long as you take sensible steps to get the best possible deal. Making sure your finances are portrayed in a positive light, gauging the economy, and planning your expenditures will ensure you can pay the loan back and progress financially at the same time.

Contact the team at Sherlock to see if a Self Managed Super Fund Loan is right for you and we will tailor a comprehensive loan proposal suited to your individual needs.

smsf loan

3 Things to Consider Before Applying for SMSF Loans

smsf loanThere are few things more vexing than having your Superannuation fund barely growing when some well placed real estate investments could enable you to retire much earlier.  Self Managed Superfund Loans (SMSF) can help you tap into that retirement fund even if your credit rating is less than perfect.  As good as this may sound, there are three important factors to consider before you begin the application process.

Your Age and Proximity to Retirement

If you are interested in investing, then you know that Australia is a star in many areas of the economy.  On the other hand, people in their 50’s and 60’s that lost everything during the 2007 Recession in the United States can tell you that there are no guarantees when it comes to investment.  Therefore if you are within 10 – 15 years of retirement, try to avoid putting more than 20% of your Super at risk.  An SMSF may still be a viable option at this stage if you can live on 80% or less of your total retirement fund.

Current and 5 Year Projected Value of Potential Real Estate Investments

Foreign citizens and business owners are more eager than ever to tap Australian markets, open shopping centres, and engage in other wealth promoting activities.  From that perspective, having one or two key real estate investments in your retirement portfolio can ensure a wealthy retirement with plenty left for the next generation.  When appraising the value of any given property:

  • ask local business owners about other companies that may be interested in moving to your area
  • take a survey of the local people and find out which products and services they are interested in
  • find out which businesses offer these services and find out how soon they can build in your area

What Limits Will You Set for Property Management?

Regardless of your age, property ownership will also come with a range of expenses.  This includes taxes, building maintenance, and interest on any loans taken using the property as collateral.  Once you know the current and 5 Year projected value of the property, it is time to decide how much money you are willing to spend before leasing or even selling the property.  If you miscalculate the projected value, or wind up taking more loans to maintain the property, you will have to sell it at a loss in order to prevent further financial problems.  At the very least, if you have a target number in mind, making that decision will be a bit easier when and if the time comes.

SMSF loans are a tool you can use to generate increased wealth.  While Australia’s economy may be strong, keeping these three key things in mind can help you protect your investment and ensure that you get the most out of each investment.  As an added bonus, when you start doing basic real estate research, you are sure to find out all kinds of fascinating things that may lead to other money making opportunities.

Contact one of our lending experts to discuss your options and tailor a comprehensive Loan Proposal suited to your specific lending needs.

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Benefits of an SMSF Home Loan

Have you always wanted to accumulate more assets and wealth? Maybe you just want your money to work well for your future and achieve maximum benefits from your investments.

When considering your options in relation to a stable retirement, one investment strategy that can work extremely well for is a Self Managed Super Fund Home Loan also known as SMSF home Loans. By acquiring real estate through your SMSF you are investing in a tried and tested asset that historically increases in value. SMSF home loans are a great way to purchase a property and leverage the benefits associated with Superannuation Tax Laws and income tax laws– thus enabling you to reach your full financial potential upon retirement.

Everyone wishes and hopes for their retirement to be comfortable and relatively debt and stress free, without the dependence on others. As such Self Managed Super Fund Loans are becoming more and more popular as they provide people with these freedoms in retirement.

SMSF home loans provide a very reliable form of investment that can provide you with guaranteed tangible benefits. To find out more about SMSF loans you have to do little bit of digging. Better still, you should seriously consider enlisting the services of a SMSF loan specialist who understands the requirement and lending criteria associated with SMSF loan applications.

Whilst they are on the whole relatively straight forward, there are definite nuances to SMSF home loans that require specialist advice best sought from a SMSF Mortgage Broker.

With the volatility of today’s share market and relatively low returns on savings, alternative methods of providing good security for retirement such as SMSF home loans work well for the general public who do not want to, nor should they have to, take huge risks with their hard earned money. We cannot reiterate enough therefore how important it is to align yourself with a SMSF home loan specialist mortgage adviser. They will be able to provide you with specialist SMSF advice and clear up any questions you have surrounding the requirements of obtaining an SMSF loan.

At Sherlock we specialise in SMSF Home Loans and have been writing them since the legislation allowing them came into effect. If you are looking to grow your wealth through investing in property via your SMSF using an SMSF home loan contact us today for a tailored loan proposal.

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smsf loans
commercial mortgage lender

SMSF Loans

Three Things to Consider Before Getting SMSF Loans

There are few things more vexing than having your Superannuation fund barely growing when some well placed real estate investments could enable you to retire much earlier. Self Managed Super Fund Loans (SMSF Loans) can help you tap into that retirement fund even if your credit rating is less than perfect. As good as this may sound, there are three important factors to consider before you begin the application process.

Your Age and Proximity to Retirement

If you are interested in investing, then you know that Australia is a rising star in many areas of the economy. On the other hand, people in their 50’s and 60’s that lost everything during the 2007 Recession in the United States can tell you that there are no guarantees when it comes to investment. Therefore if you are within 10 – 15 years of retirement, try to avoid putting more than 20% of your Super at risk. A SMSF Loan may still be a viable option at this stage if you can live on 80% or less of your total retirement fund.

Current and 5 Year Projected Value of Potential Real Estate Investments

Foreign citizens and business owners are more eager than ever to tap Australian markets, open shopping centres, and engage in other wealth promoting activities. From that perspective, having one or two key real estate investments in your retirement portfolio can ensure a wealthy retirement with plenty left for the next generation. When appraising the value of any given property:

  • Ask local business owners about other companies that may be interested in moving to your area
  • Take a survey of the local people and find out which products and services they are interested in
  • Find out which businesses offer these services and find out how soon they can build in your area
  • Evaluate timing to make sure that you choose a point where you have enough time to obtain the SMSF loan, but not so much time that it would take years on end to attract a buyer.

What Limits Will You Set for Property Management?

Regardless of your age, property ownership will also come with a range of expenses. This includes taxes, building maintenance, code compliance, and interest on any loans taken using the property as collateral. Once you know the current and 5 Year projected value of the property, it is time to decide how much money you are willing to spend before selling the property. If you miscalculate the projected value, or wind up taking more loans to maintain the property, you will have to sell it at a loss in order to prevent further financial problems. At the very least, if you have a target number in mind, making that decision will be a bit easier when and if the time comes.

SMSF loans are a tool you can use to generate increased wealth. While Australia’s economy may be very strong right now, keeping three key things in mind can help you protect your investment and ensure that you get the most out of each investment. As an added bonus, when you start doing basic real estate research, you are sure to find out all kinds of fascinating things that may lead to other money making opportunities.

Melanie Burns

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There are few things more vexing than having your Superannuation fund barely growing when some well placed real estate investments could enable you to retire much earlier. Self Managed Super Fund Loans (SMSF Loans) can help you tap into that retirement fund even if your credit rating is less than perfect. As good as this…